China Stocks Face Headwinds Ahead of Earnings Reports and Uncertain U.S. Trade Policy

Li Chen
26 Aug, 2025
Hong Kong

Stocks in China and Hong Kong faced headwinds as investors reassessed the interest rate outlook and awaited an update on U.S.-China trade talks. 

The Hang Seng index decreased 0.1%, and the CSI 300 index dropped 0.2%, and investors turned cautious ahead of the flood of earnings announcements this week. 

Haidilao International declined about 2% after the restaurant chain operator reported a downturn in revenue and earnings amid market challenges.

Later in the week, investors are awaiting quarterly results from PetroChina, Nongfu Spring, Meituan, Ping An Insurance, Midea Group, ANTA Sports, Mixue Group, Air China Cargo, CNOOC, Air China, CITIC, Cosco Holding, and China Galaxy Securities. 

The U.S.-China trade talks also appear to have stalled, as both sides struggle to find common ground and avoid the U.S.-imposed sky-high tariffs. 

Chinese negotiators have little incentive to give in to the U.S. demands, and the world's largest economy has reduced its reliance on direct exports to the U.S. over the last ten years. 

China's exports to South America, the ASEAN region, Mexico, and the Middle East have soared since 2016, enabling the Chinese trade negotiators to push back against the U.S.'s high tariffs. 

Moreover, investors lowered expectations for U.S. rate cuts after the U.S. Fed Chair Jerome Powell clarified that the rate action is likely but not certain.

 

China Indexes and Stocks 

The Hang Seng Index decreased 0.1% to 25,799.82, and the mainland-focused CI 300 Index declined 0.2% to 4,464.85. 

Haidilao International decreased 1.8% to HK $14.60 after the hot pot restaurant chain operator reported a decline in operating revenue and net income in the first half. 

Revenue fell 3.7%, and net income dropped 13.7% amid heightened competition and challenging market conditions. 

The company declared an interim dividend of 33.8 HK cents payable on October 15 to shareholders on record on September 11.