China Stocks Turn Lower After Earnings Growth and Macroeconomic Worries Resurface

Li Chen
16 May, 2025
Hong Kong

Stock market indexes in China and Hong Kong turned lower and trimmed weekly gains as investors shifted their attention to quarterly earnings and macroeconomic data. 

The Hang Seng index decreased 0.7%, and the mainland-focused CSI 300 index dropped 0.3% amid lingering worries of a weakening macroeconomic outlook and faltering investor confidence. 

Weaker-than-expected earnings from Alibaba Group Holding added to market anxieties, following a quarterly earnings update from Tencent Holdings. 

Investor confidence has remained fragile as leading companies reported higher sales and earnings, but growth profile has lagged investor expectations. 

Moreover, Alibaba, JD.com, Tencent Holding, and Baidu are also facing significant increases in investment in artificial intelligence infrastructure over several years. 

Investors are still waiting for the signs of improving macroeconomic fundamentals and a turnaround in the protracted residential real estate market after more than five years. 

 

China Indexes and Stocks 

The Hang Seng index declined 0.7% to 23,287.71, and the mainland-focused CSI 300 index dropped 0.3% to 3,884.60. 

Alibaba dropped 5% to HK $122.50, and the e-commerce company reported a 279% jump in the fiscal fourth quarter profit ending in March, largely driven by a change in valuations in equity holdings. 

Revenue jumped 7% to 236.5 billion yuan, and net income soared 279% to 12.4 billion yuan. 

NetEase Inc. soared 13.3% to HK $190.80 after the online and mobile game company reported a 35% jump in profit in the latest quarter to 10.3 billion yuan. 

Green Tea Group declined 5% to HK$6.87 per share, and the casual restaurant chain operator company priced its HK$1.21 billion initial public offering. 

Green Tea's public offering was oversubscribed by 316 times, and the company priced its initial public offering at HK$7.19 per share. 

Retail investors have returned, and they are bidding up public offerings of popular consumer-facing companies.

The public offerings of Aunt Jenny were oversubscribed by 3,616 times and Mixue by 5,258 times. 

Jiangsu Hanbon Science and Technology jumped 105% to 47.92 yuan in Shanghai after the medical equipment maker priced its initial public offering at 22.77 yuan and sold 22 million shares, raising a total of 500.94 million yuan.  

Zerun soared 105% to 70.05 yuan in Shenzhen, and the power transmission equipment maker priced its initial public offering at 33.06 yuan per share and sold 15.97 million shares, raising 527.9 million yuan.