China's Factory Activities Struggle to Expand Amid U.S. Trade Policy Uncertainty

Li Chen
30 Jun, 2025
Hong Kong

Stock market indexes in China and Hong Kong edged lower on Monday amid persistent worries about the economic outlook due to uncertainty surrounding U.S. trade policy. 

The Hang Seng index declined 0.5%, and the mainland-focused CSI 300 index inched lower a fraction as investors reviewed the latest economic data.

China's manufacturing sector activities improved slightly but remained in contraction territory for the third consecutive month in June. 

The NBS Manufacturing Purchasing Managers' Index edged higher to 49.7 in June from 49.5 in May, according to the statistical bureau's monthly update on Monday.

The NBS Non-manufacturing Purchasing Managers' Index increased to 50.2 in June from 49.8 in May, amid sustained growth in the services sector. 

The looming trade uncertainty continues to hamper the export growth outlook, compounded by the protracted slump in residential construction and ongoing weakness in consumer sentiment. 

On Tuesday, Caixin's manufacturing survey, which includes a larger group of exporting and mid-sized companies, is expected to show a stable but weak level of business activities.

Economists are worried that economic growth may struggle in the second half, as export orders are likely to be below normal after businesses front-loaded ahead of the heavy U.S. tariffs.

 

China Indexes and Stocks 

The Hang Seng index decreased 0.5% to 24,176.02, and the mainland-focused CSI 300 index added 0.01% to 3,922.29. 

Unisound AI Technology edged slightly higher to HK $208.30 after the company priced its stock on the Hong Kong Stock Exchange for HK $205 per share. 

The company sold 1.56 million shares and raised a total of HK $320 million. 

Medtide Inc. traded at HK $31.70, and the contract research and manufacturing company priced its Hong Kong public offering at HK $30.60 per share. 

The peptide-focused contract research company sold 16.8 million shares and raised HK $514.08 million.