Market Update
China, U.S. Talks In Stockholm Inconclusive, Tariff Pause Extension in Jeopardy
Li Chen
30 Jul, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds after trade talks in Stockholm failed to produce an agreement.
The Hang Seng index declined 0.4%, and the mainland-focused CSI 300 index gained 0.5% as investors worried about the impact of stalled U.S.-China trade negotiations.
China and the U.S. ended their third round of trade talks in Stockholm, and Chinese negotiators said the two sides remained far apart about the timing of new tariffs despite a framework agreement.
Currently Chinese goods imports face a 51% import duty, and negotiators were looking to lower the rate to close to 15%.
Despite the Trump administration's rhetoric about reshoring manufacturing and increasing direct investments, China's imports have been rapidly increasing this year.
The stalled bilateral talks kept market enthusiasm in check in Hong Kong ahead of the release of interim results from eight companies included in the benchmark index.
HSBC is expected to report higher revenue and earnings later today, but Hang Seng Bank may report mixed results.
China Indexes and Stocks
The Hang Seng index decreased 0.4% to 25,414.73, and the mainland-focused CSI 300 index increased 0.5% to 4,173.70.
Electric vehicle makers led the decliners on the worry that intense competition in the sector is likely to negatively impact profit outlook in the near future.
Li Auto Inc. plunged 10.7% to HK $107.40, BYD dropped 4.2% to ¥112.0, and Xiaomi Corp. fell 0.3% to HK $55.20.
Ahead of the earnings release later in the day, HSBC Holdings plc decreased 0.3% to HK $100.50, and Hang Seng Bank declined 0.7% to $122.0.
China Stocks
Li Chen
30 Jul, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds after trade talks in Stockholm failed to produce an agreement.
The Hang Seng index declined 0.4% and the mainland-focused CSI 300 index gained 0.5% as investors worried about the impact of stalled U.S.-China trade negotiations.
China and the U.S. ended their third round of trade talks in Stockholm, and Chinese negotiators said the two sides remained far apart about the timing of new tariffs despite a framework agreement.
Currently Chinese goods imports face a 51% import duties, and negotiators were looking to lower the rate to close to 15%.
The stalled bilateral talks kept market enthusiasm in check in Hog Kong ahead of the release of interim results from eight
China Indexes and Stocks
The Hang Seng index decreased 0.4% to 25,414.73, and the mainland-focused CSI 300 index increased 0.5% to 4,173.70.