China Stocks Struggle Amid Rising Risk of Rebound In Global Inflation

Li Chen
17 Jun, 2025
Hong Kong

Investors remained guarded in trading in China amid elevated tensions in the Middle East and a lack of visible progress in tariff talks. 

The Hang Seng index decreased 0.3%, and the mainland-focused CSI 300 index fell 0.2% as investors grappled with mounting inflationary pressures driven by rising crude oil prices. 

Investors avoided large bets as Iran responded with a barrage of missile attacks to the unilateral strikes by Israel. 

The two Middle Eastern nations exchanged aerial attacks for the fifth consecutive day, as global crude oil and natural gas supply chains face disruptions. 

Market sentiment was cautious after China reported a mixed batch of economic data on Monday.

Retail sales surpassed expectations, but the residential property market showed no signs of improvement for the fourth year in a row. 

Despite the pause in sky-high tariffs, the uncertainty linked to the U.S. trade policy has weighed on the market sentiment. 

The U.S. export-linked businesses are struggling to adjust to the sudden demand drop and the subsequent surge after the U.S. paused extreme tariffs until August 12. 

At least 28 million jobs are at risk if the U.S. and China fail to agree on details of the trade framework that was announced after a two-day meeting in London, UK, last week.

 

China Indexes and Stocks 

The Hang Seng Index declined 0.3% to 24,028.27, and the mainland-focused CSI 300 index dropped 0.2% to 3,867.83. 

Residential property developers were among the most actively traded stocks.

China Vanke dropped 0.6% to HK $5.06, Longfor Group Holdings decreased 0.1% to HK $9.94, Sun Hung Kai Properties Ltd. rose 0.4% to HK $87.55, and Henderson Land Development Co. Ltd. fell 0.4% to HK $26.80. 

Li Auto Inc. declined 1.6% to HK $109.40, BYD dropped 0.5% to HK $129.10, and Xiaomi Corp. fell 0.4% to HK $53.90.