China Investors On Hold Ahead of Politburo Meeting

Li Chen
22 Apr, 2025
New York City

Stock market indexes in China and Hong Kong lacked direction after investors returned from a holiday. 

The Hang Seng index inched slightly lower, and the CSI 300 index edged higher amid high uncertainty about the U.S. trade policy. 

Investors mood was cautious amid elevated trade tensions between the U.S. and China, and foreign investors have been looking for ways to diversify their U.S. dollar-denominated holdings. 

Moreover, the U.S. president ramped up attacks on Federal Reserve Chair Jerome Powell and demanded a rate cut, raising the prospect of politicizing the U.S. monetary policy. 

The attacks on the Federal Reserve also stoked fears that Donald Trump may fire Fed Chair Powell before the completion of his term in May 2026, raising serious questions about the independence of the institution, the direction of the monetary policy, and the status of the U.S. dollar.

Closer to home, investors shifted their attention to the upcoming meeting of the Politburo and are awaiting the details of the previously announced fiscal stimulus. 

Market declines in China and Hong Kong have been limited because of the hopes that the central government will soon announce additional measures to bolster economic growth and minimize the impact of the U.S. tariffs.  

 

China Indexes and Stocks 

The Hang Seng index inched lower by 0.03% to 21,387.39, and the CSI 300 index gained 0.03% to 3,786.09. 

E-commerce platform operators led decliners in trading after the U.S. imposed a stiff penalty on Chinese shipments to consumers and Hong Kong Post suspended shipments to the U.S. 

Meituan declined 6% to HK $128.30, Alibaba Group rose HK $110.10, and Tencent Holdings decreased 0.5% to HK $456.60.