China Indexes Lack Momentum, PDD and Xiaomi Diverge After Results

Li Chen
28 May, 2025
Hong Kong

Stock market indexes in China and Hong Kong lacked direction amid a flood of mixed corporate earnings. 

The Hang Seng index declined 0.5%, and the CSI 300 index inched up a fraction, and investors reacted to results from PDD, Xiaomi, and Kuaishou Technology. 

Market sentiment remained cautious amid a lack of visible earnings growth, weak consumer sentiment, and a protracted property market slump, compounded by trade tensions with the U.S. 

Despite the recent return of foreign investors, leading manufacturing stocks are likely to struggle amid rising capital expenditure and weakening margins. 

Moreover, manufacturing companies are diversifying away from the U.S., which will further dampen operating margins, negatively impacting stock prices. 

 

China Indexes and Stocks 

The Hang Seng index decreased 0.5% to 23,263.13, and the mainland-focused CSI 300 index edged up 0.1% to 3,843.51. 

PDD Holding dropped 13.6% to $102.98 in New York trading, and the parent company of Temu and Pinduoduo reported a 47% decline in earnings as sales faltered. 

E-commerce platform operators traded down after PDD Holdings said margins are likely to weaken amid rising competition.  

Alibaba Group Holding decreased 1.7% to HK $115.80, Meituan dropped 1.4% to HK $130.40, and JD.com Inc. eased 1.3% to HK $126.80. 

Kuaishou Technology advanced 5.2% to HK $51.20, and the short-video platform operator's first-quarter revenue surpassed market expectations. 

Xiaomi Corp. added 2.3% to HK $52.35, and the smartphone and electric vehicle maker reported record first-quarter revenue and earnings. 

Revenue increased to 111.29 billion yuan, and net income advanced to 10.29 billion yuan, as the average selling price for the company's smartphone inched up to 1,211 yuan.  

The company's revenue and profit growth has been powered by the shift to premium smartphones and electric vehicles.