US economic uncertainty 'may hit stocks'

The Chinese stock market could face downside risks if external factors such as the ambitious economic package and tax reforms under US President Donald Trump's administration to boost the US economy fail to materialize, analysts said on Monday.

Shigeki Sakaki, chief strategist of investment and research division at Nomura Asset Management, warned that the uncertainty over Trump's economic policy is the risk that investors should watch out for in 2017.

In an interview with China Daily in Beijing, Sakaki said: "If the measures taken by Trump do not materialize, market participants may be concerned that a higher inflation rate could weaken US economic growth and they may respond negatively. The Chinese market will perform well if the US market remains relatively robust."