China Indexes Extended Losses to Fifth Consecutive Session, Two Sessions Failed to Shed More Light On Stimulus Measures

Li Chen
13 Mar, 2025
Hong Kong

Stock market indexes in China and Hong Kong declined for the fifth session in a row amid escalating global trade tensions and a lack of clarity about the stimulus implementation plan.

The Hang Seng index declined as much as 1%, and the mainland-focused CSI 300 index dropped 0.4% after the European Union announced its retaliatory tariffs on U.S. imports. 

The constantly changing U.S. trade policy and chaotic administration of the Trump administration are driving Chinese companies to look for markets elsewhere. 

Chinese companies are rapidly adjusting to the U.S. trade policy uncertainty, and the leadership in Beijing is altering its trade stance with the European Union, ASEAN region, India, and South America. 

Moreover, investors were disappointed after the ending of Two Sessions failed to provide additional clarity on the fiscal implementation plans that were announced several months ago.

Despite bold announcements of fiscal measures to support the property market, revive consumer confidence, and tackle elevated local government debts, little progress has been made in implementation plans.

 

China Indexes and Stocks 

The Hang Seng index decreased 0.9% to 23,389.09, and the mainland-focused CSI 300 index fell 0.4% to 3,910.60. 

Technology and property developers led the decliners for the fifth session in a row amid worries about rising trade tensions. 

Alibaba Group Holding decreased 2.5% to HK $131.40, Tencent Holdings declined 1.2% to HK $506.0, and JD.com Inc. increased 0.1% to HK $156.90.

Longfor Group decreased 10.6% to HK $10.60, China Vanke Co. Ltd. dropped 2.5% to HK $5.86, and Sun Hung Kai Properties fell 0.9% to HK $74.95.