Chinese Leaders Pledge to Curb Irrational Competition in E

Li Chen
17 Jul, 2025
Hong Kong

Stocks in China and Hong Kong wavered around the flatline amid a lack of market-moving news and events. 

The Hang Seng index edged up 0.1%, and the CSI 300 index decreased 0.3%, as investors took a positive view of the latest batch of mixed economic data. 

Investors debated the need for additional fiscal stimulus after the economy expanded at 5.2% in the second quarter and the new home prices continued to decline in June. 

Market participants worried that Chinese goods may face additional high tariffs as early as August, as the U.S. negotiators demand higher tariffs on transshipped goods through Vietnam and Indonesia. 

The Indonesian goods may face as high as a 19% U.S. import tax, and transshipped goods could attract at least a 40% tax. 

The deal between the two countries is preliminary and lacks implementation details and exclusion lists, according to sources in Jakarta.

 

China Indexes and Stocks 

The Hang Seng index inched up 0.01% to 24,534.84, and the mainland-focused CSI 300 index increased 0.3% to 4,019.73. 

Electric vehicle makers were in focus after a statement from the State Council, chaired by Premier Li Qiang, suggested that the authorities plan to take steps to curb "irrational competition."

Li Auto Inc. increased 1.6% to HK $114.90, BYD advanced 1.3% to ¥112.70, and Xiaomi Corp. fell 1.5% to HK $56.45. 

Baidu Inc. decreased 3.5% to HK $85.35 after cautious comments from Morgan Stanley signaled revenue headwinds in the current quarter.

Baidu's advertising revenue is likely to fall as much as 15% in the current quarter because of the limited revenue monetization for the AI-driven searches.