China and HK Indexes Trade Lower Amid U.S. Trade Policy Confusion

Li Chen
24 Apr, 2025
Hong Kong

Stock market indexes in China and Hong Kong struggled to advance amid ongoing confusion about the U.S. trade policy. 

The Hang Seng index fell as much as 1.5%, and the CSI 300 index reversed its morning gains to losses. 

Investors reviewed the latest announcement from the Trump administration with deep skepticism amid constantly changing messaging. 

The U.S. Treasury Secretary clarified that the White House's offer to cut tariffs is not unilateral. 

Market participants are increasingly focused on policymakers in Beijing and the central bank, and additional stimulus measures are likely to cushion the blow to the Chinese economy. 

Moreover, China has intensified its search for alternative food suppliers from South America, Australia, and the ASEAN region, as the world's second-largest economy looks further to reduce its reliance on the U.S.  

Foreign investors have been on the sidelines amid ongoing U.S. trade policy uncertainty, and a weak earnings outlook has also dampened demand from domestic investors. 

 

China Indexes and Stocks 

The Hang Seng index decreased 1.4% to 21,758.22, and the mainland-focused CSI 300 index fell 0.2% to 3,781.03. 

Electric vehicle makers led the most actively traded list of stocks, and foreign brands avoided the largest automotive show in Shanghai. 

BYD declined 1.4% to HK $384.20, Li Auto dropped 2.9% to HK $90.05, and Xpeng fell 2.5% to HK $77.75. 

E-commerce platform operators retreated for the second week in a row amid worries of rising competition in the domestic market after the U.S. imposed high tariffs on small shipments arriving from China. 

Alibaba Group decreased 2.3% to HK $113.30, Tencent Holdings dropped 1.4% to HK $468.0, and Meituan dropped 4.7% to HK $127.60. 

Trip.com Group Ltd. decreased 1.8% to HK $447.0 as more Chinese tourists avoid traveling to the U.S. amid stringent border control checks. 

Arrivals from China declined 0.8% from a year ago to 115,151 in March, according to the latest data released by the U.S. Customs and Border Protection. 

Tourists from Germany plunged 28% and the UK declined 14%, and arrivals by air from Canada declined 13% and by road plunged 32%. 

Shenzhou International Group fell 0.5% to HK $52.80, and the apparel and textile maker extended one-year losses to more than 31% amid ongoing trade tensions between the U.S. and China.