Hong Kong Indexes Plunged 3%, China's Exports and Trade Surplus Rebounded

Li Chen
13 Oct, 2025
Hong Kong

Stock market indexes in China and Hong Kong plunged on Monday after a rapid escalation of trade tensions reignited fears of a prolonged trade war. 

The Hang Seng index dropped 3%, and the mainland-focused CSI 300 index fell nearly 2% as investors reviewed the latest salvo of U.S. tariff threats. 

The U.S. president threatened to impose additional 100% tariffs on China's goods and services from November 1, after China tightened restrictions on rare earth mineral shipments. 

The group of critical minerals are used in the manufacturing of electronics, semiconductors, and battery-powered vehicles, and China's sweeping restrictions could sharply curtail advanced electronics output and supply chains in Japan, Taiwan, and South Korea. 

 

China's Exports Show Resilience Amid U.S. Headwinds

China's exports rebounded in September as producers diversified to new markets amid ongoing trade tensions with the U.S. 

Exports soared 8.3% to $328.6 billion, and imports advanced 7.4% to $238.1 billion, driving the trade surplus up by 11% to $90.45 billion, the General Administration of Customs reported on Monday. 

Overseas buyers front-loaded orders ahead of the Golden Week holiday in October, driving exports to a seven-month high.

China's exports to the U.S. accounted for 10.4% of total goods exports in September, after shipments to the world's largest economy fell 27% from a year ago compared to an annual decrease of 33.1% in the previous month. 

Despite the shrinking trade with the U.S., China's trade surplus edged higher to $20.9 billion from $20.3 billion in August. 

Chinese manufacturers diversified their shipments to other destinations, and shipments to the ASEAN region increased 15.6%, to the European Union rose 14.2%, to Latin America 15.2%, and to Africa by 56.4%. 

Year-to-date At the end of September, China's goods trade surplus rose 6.1% to $875.1 billion, reflecting a 6.1% increase in exports and 1.1% in imports in the period. 

 

China Indexes and Stocks 

The Hang Seng index dropped 3% to 25,503.98, and the CSI 300 index decreased 1.8% to 4,535.78. 

Alibaba Group Holding Ltd. decreased 5.5% to HK $156.30, Tencent Holdings dropped 4.4% to HK $624.50, and Meituan fell 4% to HK $97.65. 

HSBC Holdings plc decreased 1.9% to HK $101.30, China Merchants Bank eased 1.9% to HK $45.40, and China Life Insurance fell 4.2% to HK $21.14.