China Tech Rally Lost Steam as Investors Refocus On Domestic Economic Issues

Li Chen
16 Jul, 2025
Hong Kong

The early tech rally in Hong Kong fizzled out, and market indexes wavered around the flatline. 

The Hang Seng Index advanced 1%, and the mainland-focused CSI 300 index fell 0.3% after investors reassessed the latest batch of mixed economic data. 

China's economy has been resilient amid U.S. trade barriers, but the looming U.S. tariffs, protracted property market weakness, and weakening consumer confidence are keeping investors on edge 

China's second-quarter GDP growth and retail sales met investor expectations, but the weakness in the residential market and property investment dampened investor sentiment. 

Moreover, the jobless rate held steady at 5% in June, despite the ongoing business disruption in the export sector compounded by the weakness in the property market. 

Investors view China's employment data with deep skepticism, with most estimating the jobless rate closer to 9% and youth unemployment as high as 35%. 

 

China Stocks and Indexes 

The Hang Seng index increased 0.5% to 24,703.06, and the mainland-focused CSI 300 index edged down 0.3% to 4,007.81. 

Tech stocks led the market rebound after the California-based Nvidia said it plans to resume selling advanced graphic chips to China that meet the U.S. export guidelines. 

SMIC added 1.3% to HK $46.20, Xiaomi Corp. increased 0.4% to HK $57.90, and BYD Electronic International decreased 0.3% to HK $33.60. 

Huadian New Energy Group soared more than 180% to 8.90 yuan after the company listed its shares on the Shanghai Stock Exchange. 

The company sold about 5 billion shares and raised 18 billion yuan in an initial public offering and plans to use the proceeds to finance new wind and solar power projects.