Hong Kong Stocks Extend Rebound to 20% from Tariff Lows, JD.com's Earnings Lift Sentiment

Li Chen
14 May, 2025
Hong Kong

China and Hong Kong stock market indexes advanced to two-month highs as investors shifted their focus to corporate earnings. 

The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index advanced 0.3% after JD.com reported a sharp jump in earnings and sales in the latest quarter. 

The Hang Seng index has rebounded 20% from the April 7 low and reached the level last seen on March 28. 

In 2025, the Hang Seng index has advanced 19.4%, and the mainland-focused CSI 300 index has gained 2.3%.  

Investors are awaiting results from Alibaba Group Holding and Tencent Holdings later in the week. 

Optimism returned in early trading on Wednesday, as investors remained confident about the earnings outlook for large technology companies. 

The pause in tariffs for 90 days has swung the manufacturing sector back into full swing for now, but trade relations with the U.S. are likely to be rocky in the years ahead. 

Manufacturers are ramping up production and are looking to warehouse goods in Vietnam and Mexico amid an uncertain tariff outlook and the turbulent policies of the Trump administration. 

The makers of toys, consumer goods, office products, apparel and accessories, and electrical appliances are looking to reduce their reliance on the U.S. market. 

The U.S. accounts for 14.5% of total Chinese exports, compared to 19% in 2020, as companies build sales in the ASEAN region, in the Middle East, and in South America. 

 

China Indexes and Stocks 

The Hang Seng index increased 1.4% to 23,425.47, and the mainland-focused CSI 300 index added 0.3% to 3,907.26. 

JD.com jumped 2.9% to HK $140.70 after the e-commerce company reported a 16% increase in sales in the first quarter. 

Tencent Holdings Ltd. advanced 2% to HK $516.0 ahead of the company's first-quarter results on Wednesday. 

Alibaba Group Holding gained 1.6% to HK $128.10 ahead of the company's results on Thursday and extended its five-week advance to 32%.