Financial Markers Rebound in Shanghai and Hong Kong, China Trade Surplus Shrinks In July

Li Chen
07 Aug, 2024
Hong Kong

Market indexes in Shanghai and Hong Kong rebounded from a three-month low after calm returned to global markets.

The Hang Seng index jumped more than 1.5%, and the CSI 300 index advanced 0.4%. 

Financial markets recovered  from steep losses over the last three days, heightened by worries about the unexpected weakening of U.S. economic conditions and the Bank of Japan's increase in interest rates.

Positive market sentiment was supported by a strong rise in China's exports and imports in July, indicating sustained domestic demand for imported goods. 

Exports increased 7% to $300.6 billion, and imports advanced 7.2% to $216 billion, driving the trade surplus to $84.7 billion, lower than $99.1 billion in June and higher than $80 billion a year ago. 

China's exports to the U.S. rose for the third month in a row and advanced 8%; to the ASEAN region, they increased 12.2%; to the European Union, they rose 7.9%; but declined by 2.8% to Russia.

Exports to the U.S. have been surging in the past few months, ahead of the expected tariffs on over 100 Chinese goods in the next few weeks. 

However, the outlook for China's exports is not clear in the second half, after the implementation of additional tariffs and import hurdles in the U.S. and the European Union. 

   

China Stock Movers 

The Hang Seng index soared 1.8% to 16,951.78, and the CSI 300 index added 0.4% to 3,355.76. 

Internet leaders led the gainers in Hong Kong trading after falling for three weeks in a row.

Alibaba Group advanced 2.9% to HK $77.45, Tencent Holding increased 2.9% to HK $364.60, and Meituan gained 1.8% to HK $107.50.

Techtronic Industries increased 4.9% to HK$96.05 after the power tool maker reported a 16% increase in first-half profit.

BYD Company advanced 0.08% to HK $211.05, Li Auto jumped 4.1% to HK $76.05, and Xpeng decreased 1.9% to HK $28.10.