A Democrat win in the upcoming US presidential election will bring in a “friendlier” approach to global trade and fewer tariffs — which is good news for Chinese markets, Goldman Sachs analysts said.

In a 7 October note on China rates and FX, the US bank’s analysts said they had observed greater optimism towards Chinese assets among their clients. This, the analysts argue, is both due to the ongoing economic recovery in the country following the initial Covid-19 pandemic hit, and the recent signs of a Joe Biden win next month.