Hong Kong Indexes Sink Further, China's Exports and Trade Surplus Surge to Record Highs In December and 2024

Li Chen
13 Jan, 2025
Hong Kong

Stock market indexes in China and Hong Kong fell and traded at four-month lows after the strong U.S. jobs reports knocked down rate cut expectations and boosted the U.S. dollar.

The Hang Seng index dropped 1.2%, and the CSI 300 index declined 0.5% following the release of December's nonfarm payrolls report. 

The U.S. economy added 256,000 jobs in December, faster than 212,000 in the previous month, and accelerated for the second month in a row, according to a report released by the U.S. Bureau of Labor Statistics. 

The strong labor market report also supported the case for the Federal Reserve to lower rates by a smaller amount and raised prospects of a pivot to a rate increase later in the year. 

The shift in outlook for the U.S. interest rates knocked down market indexes in China, Korea, India, and Australia.

Japan's financial markets are closed for a public holiday. 

Investors reviewed the international trade data for December, and exports soared 10.7% and imports advanced 1%. 

Exports advanced for the ninth month in a row and rose at the fastest pace in four years to $335.6 billion as customers front-loaded orders ahead of possible escalation in U.S. tariffs in the second administration of Donald Trump.

Imports increased 1% to a 27-month high of $230.8 billion, reversing a 3.9% fall in November, according to trade data released by General Administration of Customs on Monday. 

China's trade surplus rose to $104.8 billion in December, an increase from $75.31 billion a year ago, and the largest since February after the surge in exports. 

For the full year of 2024, exports advanced 5.9% to $3.6 trillion, and imports increased 1.1% to $2.6 trillion, lifting the full-year surplus to a record high of $992.2 billion from $823.2 billion a year ago. 

China's exports in the year were driven by a surge in demand for electric vehicles, solar panels, and advanced chips. 

Electric vehicle shipments in 2024 soared to a record 6.04 million units, an increase of 22% from a year ago.

In value terms, exports increased 15.5% to a record $117.4 billion from a year ago in 2024. 

 

China Stock Movers 

The Hang Seng Index dropped 1.2% to 18,837.39, and the mainland-focused CSI 300 index decreased 0.5% to 3,714.42. 

Technology stocks continued to decline for the third week in a row following the rise in U.S. bond yields, lowering the appeal of high-growth companies. 

Baidu Inc. declined 3.7% to HK $75.60, Alibaba Group Holding Ltd. dropped 1.9% to HK $78.05, JD.com Inc. fell 2% to HK $128.40, and Meituan closed down 3.2% to HK $135.70. 

Yibin City Commercial Bank traded around HK $2.59 after the company listed its stock on the Hong Kong Stock Exchange. 

The bank priced its initial public offering at HK $2.59 and raised net proceeds of HK $1.71 billion, or $219 million. 

New Gonow Recreational Vehicles plunged 15% to HK $1.10 after the company listed its share on the Hong Kong Stock Exchange and raised HK $305 million, or $39 million. 

The vehicle maker sold 240 million shares at a price of HK $1.27 per share, near the bottom end of its pricing range between HK $1.24 and HK $1.64.