China and Hong Kong Indexes Lacked Direction After U.S. Trade Agreement Worries Resurfaced

Li Chen
20 Aug, 2025
Hong Kong

Stocks remained under pressure, and benchmark indexes extended weekly losses amid growing anxieties about the U.S. trade policy. 

The Hang Seng index decreased by 0.5%, the CSI 300 index edged down by 0.1%, and investors reviewed the latest rate actions taken by the People's Bank of China. 

The PBoC held steady its loan prime rates despite a weakening economic backdrop and elevated global trade tensions. 

The central bank left unrevised its prime rate for one-year loans at 3.0% and for five-year loans at 3.5% and kept rates at record low levels for the third consecutive month.

In addition, new yuan loans fell for the first time in two decades in July by 50 billion yuan and reversed June's 2.24 trillion yuan increase, but broader credit growth slowed to 1.16 trillion from 4.20 trillion in June.

Market sentiment was dented after U.S. Treasury Secretary Scott Bessant said that China tariffs could stay in place for a while, indicating that the Trump administration is in no hurry to finalize its trade negotiations with China. 

 

China Indexes and Stocks 

The Hang Seng index decreased 0.5% to 24,980.20, and the CSI 300 index dropped 0.1% to 4,218.37. 

Kuaishou Technology dropped 4.5% to HK $70.65, Midea Group Co. Ltd declined 2% to HK $80.95, and JD Health International fell 6.2% to HK $62.40. 

SICC traded at HK $45.20 after the mainland China-based semiconductor material maker priced its public offering and commenced trading on the Hong Kong Stock Exchange. 

The Huawei-backed company sold 47.74 million shares at a price of HK $42.80 per share and raised gross proceeds of HK $2.04 billion. 

Shenyang Hongyuan Magnet Wire soared more than 380% to 44.78 yuan after the company priced its initial public offering and listed on the Beijing Stock Exchange.

The electromagnetic wire maker priced its offering at 9.17 yuan per share.