(Yicai) May 16 -- China-US trade fictions present more opportunities than challenges for China’s technology sector, according to the findings of an investor survey carried out by Cheung Kong Graduate School of Business.

Forty-six percent of respondents the Investor Sentiment Questionnaire Survey (CKISS) indicated that the tariff tensions will have more positive than negative effects on the Chinese tech sector in the long run. Twenty-eight percent anticipate long-term negative effects, while around 20 percent expect no significant long-term impact.

The survey of 1,300 retail investors and 800 financial industry professionals was conducted in April and the results were released yesterday.

The main impact of the China-US tech decoupling is reflected in areas such as artificial intelligence and semiconductors, which will force China to beef up its innovation efficiency, said Liu Jin, a professor of accounting and finance and director of the Investment Research Center at Cheung Kong Graduate School of Business.

However, the trade frictions between China and the US will also impact other strategic technology sectors, such as biopharmaceuticals, Liu noted, adding that decoupling in these sectors is unlikely.

More than half of the surveyed investors consider China a world-leading AI power. Sixty percent indicated that China will make significant progress in the biopharma field in the next decade.

Although valuations of some listed Chinese tech firms may face short-term pressure, Liu pointed out that in the long run, as China's original innovations become more prominent and as domestic and European markets expand, investor confidence in the capital markets will steadily recover.

Investor confidence in the Chinese economy, however, was significantly affected by the escalation of the China-US trade conflict this year, as they pay particular attention to international relations, Liu added.

Nearly 64 percent of the respondents considered China-US relations a major factor affecting investments last months, as it increased the aversion to risk. Sixteen percent said they were willing to raise investment in gold in the period.

Sixty-one percent expected Chinese mainland stocks to rise in April, down from last November but up from last July, according to the survey. Since the start of the year, investors have anticipated the returns on mainland stocks to grow, Liu noted, adding that this is a “positive aspect.”

External challenges will accelerate China's internal economic structural changes, with companies focusing on how to expand domestic demand, according to Liu.

The survey results also showed that investors are paying more and more attention to the private sector. Nearly 45 percent considered the status of the private sector to be very important for future investment decisions.

Regarding how to boost confidence among private businesses, about 74 percent of investors indicated that strengthening continuity and stabilizing economic policies are essential.

Editor: Futura Costaglione