China's Consumer and Producer Prices Fall Again, U.S. Targets China with Additional Tariffs

Li Chen
10 Apr, 2025
Hong Kong

China and Hong Kong stock market indexes advanced, and the yuan remained under pressure after the U.S. slapped additional tariffs on China. 

The Hang Seng index advanced 2%, and the mainland-focused CSI 300 index gained 1% amid the escalating trade war between the U.S. and China. 

The Trump administration imposed an additional 50% tariff on China, increasing the total to 124%, and paused for 90 days tariffs on all other imports.  

The escalating trade tensions kept market gains in check after Wall Street indexes soared as much as 10% after the Trump administration announced yet another change in the trade policy. 

Benchmark indexes in Japan soared 8.8%, in Australia jumped 4%, and in South Korea advanced 6%.  

On the economic front, consumer price inflation fell 0.1% from a year ago in March, matching the decline for the January-February period.

Food prices decreased by 1.4%, while service prices increased by 0.3%, according to the statistics bureau.    

Core inflation, which excludes food and energy prices. accelerated to 0.5% from 0.3% in the two-period month ending in February. 

The decline in consumer prices was milder than 0.7% fall in February, but prices fell for the second consecutive month. 

The producer price index declined for the 35th consecutive month and fell 2.5% in March, faster than 2.3% in the previous month. 

The National Bureau of Statistics announced inflation updates in two separate reports on Wednesday. 

The decline in inflation confirmed the ongoing deflation trend after consumer prices rose 0.2% in 2024 and matched the rate in the previous year. 

 

China Indexes Stocks 

The Hang Seng index soared 2.4% to 20,819.35, and the mainland-focused CSI 300 index advanced 1.3% to 3,733.59. 

Li Auto soared 6.5% to HK $86.65, BYD rose 3.7% to HK $347.60, and Xpeng jumped 6.3% to $72.50.

Sunny Optical Technology Group advanced 6.4% to HK $63.0, Lenovo Group Ltd. rose 7.7% to HK $8.08, and SMIC advanced 3.5% to HK $44.75.

Alibaba Group Holding advanced 3.3% to HK $44.75, Tencent Holdings Ltd. gained 2.5% to HK $44.75, and JD.com advanced 5.5% to HK $44.75.