Rising Trade Tensions with the West Weigh On China Indexes

Li Chen
26 Jun, 2024
Hong Kong

Stocks in Shanghai and Hong Kong declined amid rising tensions between the second-largest economy and the European Union. 

The CSI 300 and the Hang Seng index edged lower to a four-month low as investors remained cautious ahead of the Communist Party's third plenum next week. 

Foreign investors have been reducing their stakes in China-based companies after policymakers and central bankers failed to provide concrete and far-reaching measures to revive consumer and investor sentiment. 

Chinese stocks are expected to trade in a tight range amid a lack of catalysts, an uneven economic recovery, rising trade tensions with the West, and a weak earnings growth outlook. 

 

China Stock Movers 

The CSI 300 index decreased 0.2% to 3,449.20, and the Hang Seng index eased 0.01% to 18,069.75. 

Game developers traded higher after China permitted the release of 104 new online games in June, higher than fewer than 100 games in the previous two months. 

NetEase soared 5.1% to HK $149.0, but Tencent Holdings decreased 0.6% to HK $379.80. 

Property developers were in focus after a court in Hong Kong granted Shimao Group a four-week period to secure a restructuring agreement with its creditors. 

Shimao Group gained 0.8% to HK$0.78. 

Electric vehicle makers were in focus after Canada announced plans to start a public hearing to impose import tariffs on passenger cars made in China. The move is likely to hit BYD the hardest. 

BYD Group decreased 1.5% to HK $238.40. 

Among the new listings, two companies made a strong debut in Shanghai. 

Aidite Technology, the maker of dental material, soared more than 90% to 85.95 yuan in Shenzhen on the first day of its trading, and Yonz Technology, the maker of photovoltaic products, jumped 55% to 35.80 yuan in Shanghai.