China Indexes Fluctuate In Tight Trading Range Amid Weak Market Sentiment

Li Chen
26 Mar, 2025
Hong Kong

Stock market indexes in China and Hong Kong lacked direction, and investors took a wait-and-see approach amid elevated geopolitical uncertainties. 

The Hang Seng advanced 0.2%, and the mainland-focused CSI index decreased 0.4%, and benchmark indexes traded in a tight range amid weak sentiment. 

Investors have been on the sidelines after the recent run-up in technology stocks, uncertainty about U.S. trade policy, and lack of catalysts for corporate earnings growth. 

Beijing's policymakers have failed to follow through after announcing a raft of stimulus measures last year and reiterating their commitment to supporting the revival of the property market and consumer confidence. 

In addition, Beijing is struggling to devise its trade stance amid constantly changing U.S. trade policy and shifting priorities in the European Union. 

The sharp escalation in U.S. tariffs and stricter implementation of the de minimus rule have sharply slowed down new orders for small manufacturing companies in several sectors and caused widespread job losses in Shenzhen, Ningbo, and Guangzhou.

 

China Indexes and Stocks 

The Hang Seng index increased 0.2% to 23,406.73, and the mainland-focused CSI 300 index fell 0.4% to 3,920.44.

Contemporary Ampere Technology Limited decreased 0.3% to 259.02 yuan, and the largest maker of electric vehicle batteries received an approval from the mainland securities regulator to list its stock on the Hong Kong Stock Exchange and raise $5 billion. 

Nio advanced 0.6% to HK $34.01, and the company's chief executive, William Li, said that the electric vehicle maker is expected to break even in the fourth quarter. 

Li Auto, Xpeng, and BYD advanced following Nio's announcement.