Hong Kong Markets Extended Rally to Eighth Day Ahead of US-China Joint Statement

Li Chen
12 May, 2025
Hong Kong

Stock market indexes in China and Hong Kong advanced amid hopes of a positive outcome of the US-China trade talks in Switzerland. 

The Hang Seng index gained 0.8%, and the mainland-focused CSI 300 index inched higher 0.6%, as investors looked forward to details of the framework of US-China trade talks. 

The talks in Geneva followed weeks of tensions and global financial market chaos after the U.S. slapped unilateral country-specific tariffs on all imports, with the heaviest burden on shipments arriving from China. 

The two sides issued positive comments after two days of talks ending on late Sunday, but it is not clear what the U.S. and China have agreed upon. 

The U.S. and China "have taken important steps to resolve important differences through equal dialogue and consultation," the state news agency Xinhua reported. 

Despite positive spin by trade negotiators, investors are skeptical that the two sides could reach an agreement in such a short time, as China is looking to lower tariffs to less than 10% from the current proposed level of as high as 250%. 

Negotiators in Geneva said that the two sides will release a joint statement on early Monday New York time, and the statement is likely to focus on the trade negotiation framework and set an outline of discussion topics. 

Two sides are far apart in their demands, and an agreement is not likely to be reached before the year's end, as the Chinese government ramps up imports of agricultural products from South America and restricts the sale of rare earth minerals to the U.S., according to three Chinese trade negotiators contacted by ticker.com. 

The trade discussions are fluid and at an early stage, and the possible outcome is likely to focus on an interim deal covering the next three months to de-escalate tensions and continue the flow of direct shipments from China to the U.S. West Coast ports.

 

China Indexes and Stocks 

The Hang Seng index advanced 0.8% to 23,049.61, and the mainland-focused CSI 300 index edged up 0.6% to 3,869.78. 

Contemporary Amperex Technology Co. Ltd. rose 2.6% to 254.69 yuan, ahead of the electric vehicle battery maker's public offering on the Hong Kong Stock Exchange. 

The company is set to sell at least 117.9 million shares and raise as much as HK $41 billion, or US $5.3 billion, at the top end of its offering price of HK $263. 

Export-sensitive stocks advanced in Hong Kong trading after the US and China sent positive signals after the ending of trade talks in Switzerland. 

Haier Smart Home Co. jumped 4.4% to HK $23.80, Techtronic Industries advanced 3.9% to HK $89.75, and Sunny Optical Technology Group soared 10.5% to HK $70.95.