China Indexes Jumped 1.7% as Fiscal Stimulus Announcements to Overshadow Trump Tariff Headwinds

Li Chen
07 Nov, 2024
Hong Kong

Benchmark indexes in China and Hong Kong rebounded from morning losses as investors looked forward to fiscal stimulus announcements from the top legislative body on Friday. 

The Hang Seng index gained 1.3%, and the CSI 300 index advanced 1.9% after recovering from losses at the opening. 

Market indexes were under pressure following the losses in Chinese stocks listed in New York after former U.S. president Donald Trump secured a return to the White House.

Trump had campaigned on imposing as much as 60% tariffs on Chinese goods and implementing additional restrictions on U.S. investments in China. 

However, tariffs are likely to have little effect on Chinese companies, as most of the import duties are paid by U.S. consumers. 

Only 10% of the listed companies in China and Hong Kong are dependent on exporting to the U.S., buffeting most companies from the hostile environment for the Chinese goods in the U.S. and the European Union. 

Investors are looking forward to announcements from the standing committee of the People's National Congress on Friday, and economists are estimating that the lifting of the debt ceiling will provide between 2 trillion yuan ($281 billion) and 7 trillion yuan for fiscal stimulus measures. 

 

China Stock Movers 

The Hang Seng index rose 1.3% to 20,800.13, and the CSI 300 index advanced 1.9% to 4,101.89. 

Export-driven technology companies, appliance makers, electric vehicle makers, and travel and entertainment companies were in focus. 

Midea Group declined 1.8% to HK $69.60, Haidilao International increased 8% to HK $17.72, ANTA Sports increased 3.6% to HK $88.90, and Galaxy Entertainment Group advanced 4.6% to HK $36.20. 

BYD declined 2% to HK $277.20, Li Auto gained 1.4% to HK $97.0, and Xpeng Inc. gained 1.2% to HK $50.0.