HSBC's global research report points out that the US election emphasizes the market's outlook on the global economy. In the asia utilities industry and alternative energy sector, the main concerns are the potential postponement of interest rate cuts and the adverse effects of trade policies on the industry, especially in china and south korea. The report states that fundamentals may not change significantly, except for the wind power supply chain.

The report believes that US interest rates remain highly correlated with the stock prices of utilities industry listed in hong kong. However, companies with changing cash flows and potential for dividend increases can have valuations that are separated from macro risks, thereby outperforming peers. The report prefers CLP Holdings Limited (00002.HK) and Cheung Kong Infrastructure Holdings Limited (01038.HK). Chinese utilities also provide a good diversification against geopolitical risks, with the report continuing to favor Longyuan Power Group Corporation Limited (00916.HK), based on attractive valuations.

In the area of wind power, investors are worried that US trade tariffs may extend and overturn investments related to climate change. South Korean-related stocks involved in sales and production in the usa performed the worst after the US election. In china, the Chinese government encourages supply-side integration to become a new focus, with the report favoring flat glass (06865.HK) and gcl tech (03800.HK), based on their lower direct exposure to US policy risk and improvements in supply-demand balance.