Donald Trump scares Chinese investors as much as China's faltering economy, Goldman Sachs says

• Chinese investors are worrying about November's presidential election, according to Goldman Sachs.
• Donald Trump has signaled he'd impose tariffs of more than 60% on Chinese imports if elected.

Chinese investors aren't just worried about China's faltering economy — they're also fretting about Donald Trump's potential return to the White House, according to Goldman Sachs.

The bank surveyed local fund managers and found one of their top concerns is the Republican frontrunner, who's signaled he'd ramp up Washington's trade war with Beijing by imposing tariffs on Chinese goods.

"The most frequently asked questions among local investors include implications for China should Donald Trump become the next US president, what would trigger more aggressive policy easing in China, and offshore investors' view about Chinese stocks after persistent weak equity market performance," a team of analysts led by Maggie Wei said in a research note published Friday.

Goldman Sachs clients in offshore markets like Hong Kong tend to be more focused on "economic fundamentals — for example whether property markets have bottomed, whether deflation will continue and what policymakers can do to fight deflation," they added.

Trump has positioned himself as a China hawk ahead of November's election. On Sunday, he told Fox News' "Sunday Morning Futures" that he'd impose tariffs of more than 60% on Chinese goods.

"No, I would say maybe it's going to be more," than 60% Trump said in response to a question from presenter Maria Bartiromo about a Washington Post report that said he'd ramp up the trade war between the two countries.

"You have to do it," he added. "You know, obviously I'm not looking to hurt China. I want to get along with China. I think it's great. But they've really taken advantage of our country."

Trump's tariff threat comes with China's exports plunging. Policymakers have also failed to stave off deflation and are struggling to contain a property-market crisis that's brought down indebted real-estate developers such as Evergrande and Country Garden in recent years.

Beijing has also turned to rare intervention measures in a bid to end a meltdown in stock prices that's wiped out over $6 trillion in valuation since 2021. The flagship CSI 300 index is down 22% over the past 12 months, while Hong Kong's Hang Seng gauge has slumped 27% over the same period.