Bu

Li Chen
23 May, 2025
Hong Kong

Stock market indexes in China and Hong Kong advanced, and investors shifted their focus to the domestic economy. 

The Hang Seng index gained 0.5%, and the CSI 300 index edged up 0.3% amid hopes that the U.S. and China will strike a deal before the end of the 90-day tariff pause in early August. 

The Hang Seng index is set to extend its weekly advance for the sixth consecutive session after the two largest economies in the world agreed to pause the implementation of sky-high tariffs. 

China's goods exports to the U.S. declined about 20% in April, but the total goods exports increased 8%, driven by the rise in demand in the ASEAN region.  

Investors are hoping that consumer spending will continue to advance, supported by the stimulus measures to purchase electric vehicles and home appliances, but the outlook for the residential property markets remains dim. 

New home prices continued to slide for the 22nd month in April, and demand in the second- and third-tier cities remained weak amid persistent worries about the financial health of property developers. 

Foreign investors are tiptoeing in Hong Kong-listed stocks in the hopes that the boom in electric vehicles, renewable energy, and artificial intelligence-linked companies is likely to persist over several years. 

 

China Indexes and Stocks 

The Hang Seng index gained 0.5% to 23,684.48, and the CSI 300 index increased 0.3% to 3,925.58. 

Jiangsu Hengrui Pharmaceuticals, one of China's largest drug companies, completed its Hong Kong listing. 

The company raised HK $9.9 billion, or $1.26 billion, and priced its stock at HK $44.05 per share. 

The Hong Kong-listed stock surged as much as 30% to HK$57.04, and the retail tranche was oversubscribed by 450 times and the institutional tranche by 17 times.

The state-owned generic drug maker's public offering follows CATL's $5.2 billion offering earlier this week, the largest initial public offering so far this year in 2025.