China Stocks Consolidate Ahead of Earnings and U.S. Import

Li Chen
02 Apr, 2025
Hong Kong

Stock market indexes in China and Hong Kong lacked direction ahead of the U.S. tariff news and the start of the earnings season. 

The Hang Seng index declined 0.3%, and the mainland-focused CSI 300 index decreased 0.2%, and investors reviewed the latest business activities data released earlier in the week. 

Investors were cautious ahead of the release of the U.S. import tax on foreign cars and automobile parts on April 2, and investors are bracing for additional tariffs on Chinese goods. 

Shipbuilders, steelmakers, renewable energy companies, and pharmaceutical companies are likely to face additional tariffs of as much as 50% in the weeks ahead.

Market sentiment improved after two separate surveys showed improving activities in the manufacturing sector, but the pace of increase was slow and halting. 

Moreover, earlier in the week, China's finance ministry arranged for the injection of as much as 500 billion yuan into the four largest banks, following on the promise after the meeting of top policymakers in the previous month. 

Despite the improving economic data and the central government and the People's Bank of China providing stimulus, investor sentiment was cautious amid the escalating trade war with the U.S.

 

China Indexes and Stocks 

The Hang Seng index decreased 0.3% to 23,147.13, and the mainland-focused CSI 300 index declined 0.2% to 3,883.00.

Trip.com Group Ltd decreased 1.5% to HK $494.20 and dropped as much as 4% amid travel cancellations following the earthquake in Thailand and Myanmar.

BYD declined 1.9% to HK $379.0, Li Auto increased 0.9% to HK $99.55, and Xpeng fell 0.8% to HK $82.50.