China Stocks Move Higher Amid Global Shift Away from U.S. Stocks

Li Chen
04 Jun, 2025
Hong Kong

Stock market indexes in China and Hong Kong advanced amid hopes of de-escalation in trade tensions between the U.S. and China. 

The Hang Seng index gained 0.7%, and the mainland-focused CSI 300 index edged up 0.3%, following the market advance in overnight trading in New York. 

Stock market indexes in New York approached record highs reached earlier in the year following labor data confirming resilient market conditions. 

Moreover, investors are hoping that a potential call between the leaders of the U.S. and China could smooth trade negotiations, as both parties ramped up accusations of violation of verbal agreements reached in Geneva, Switzerland, last month.

 

China Indexes and Stocks 

The Hang Seng index added 0.7% to 23,680.73, and the CSI 300 index increased 0.3% to 3,871.88. 

Electric vehicle makers advanced after the government released a program to facilitate sales in the rural area. 

BYD gained 1.6% to HK $407.20, Li Auto added 0.8% to $117.40, and Geely Automobile Holdings Ltd. increased 2.4% to HK $18.26.  

Ping An Insurance declined 1.5% to HK $45.80 after the company announced its plans to sell convertible bonds worth $1.5 billion, or HK $11.8 billion.

The bond sale is likely to dilute the insurance company's earnings per share in the near future. 

Xiaomi Corp. saw a 1.6% increase to $54.10 following the CEO's announcement that the company expects its electric vehicle unit to turn profitable this year. 

The company's electric vehicle revenue in the first quarter surged to 18.1 billion yuan from 18.4 million yuan a year ago, and a loss of 500 million yuan, according to the company's filing with the exchange.