China Indexes Retained Upward Bias In Cautious Trading

Li Chen
09 Sep, 2025
Hong Kong

Benchmark indexes in China and Hong Kong advanced in cautious trading as investors looked forward to upcoming inflation data and rate actions in the U.S.

The Hang Seng Index advanced nearly 1%, and the mainland-focused CSI 300 index decreased 0.5% amid worries that policymakers may struggle to break the entrenched deflationary trend. 

On Wednesday, the National Bureau of Statistics is set to release two separate inflation reports: producer prices and consumer prices. 

In August, producer price inflation, a measure of wholesale price, is likely to show an annual decline of 2.9%, and consumer price inflation is likely to indicate easing of 0.2%. 

China has set an annual economic growth target of 5% in 2025; however, the broader economy is facing multiple headwinds amid a sharp escalation in U.S. tariffs, persistent weakness in the residential property and labor markets, and faltering consumer confidence. 

However, the central government is struggling to provide additional fiscal stimulus measures because policymakers are tackling rising government debt levels. 

In a positive sign for the economy, China's goods exports are expected to register a growth of at least 4% in 2025, despite falling exports to the U.S.

But intense competition in the renewable energy, electric vehicle, and electric battery production has forced most companies to slash prices and forego profitability. 

 

China Indexes and Stocks 

The Hang Seng Index inched up 0.9% to 25,863.73, and the CSI 300 index fell 0.5% to 4,446.66. 

Zijin Mining Group advanced 2.2% to HK$28.36, and the gold price reached a new high of $3,650 an ounce in New York trading. 

Alibaba Group Holding advanced 2.6% to HK$141.0, Meituan dropped 1% to HK$99.90, and Tencent Holdings increased 0.7% to HK$623.50. 

Dahon Tech (Shenzhen) Co. Ltd. soared 21% on the first day of trading on the Hong Kong Stock Exchange. 

The bicycle maker priced its initial offering at HK$49.50 per share and sold 7.9 million shares in a global offering and raised HK$392 million.