China Indexes Faced Headwinds Amid Trade Uncertainty and Persistent Deflationary Trend

Li Chen
17 Oct, 2025
Hong Kong

Stocks in China and Hong Kong closed down on Friday and extended weekly losses amid heightened trade uncertainty. 

The Hang Seng Index decreased 1.6%, and the mainland-focused CSI 300 index fell 1.3% ahead of the release of key macroeconomic data on Monday.

The National Bureau of Statistics is set to release China's retail sales and industrial production data on Monday, and economists are signaling caution.

Nominal retail sales in September are likely to advance about 3%, and industrial production is expected to increase 5%, slower than the annual rise of 5.2% in August. 

Retail sales in September are expected to advance 3.5%, slightly higher than the 3.4% in August, reflecting a pre-Golden Week holiday surge.

China's Communist Party is scheduled to start its four-day plenary meeting on Monday, and policymakers are set to discuss social and economic development goals for the next five years. 

Gold and silver marched further into record territory, supported by additional purchases by retail investors and sustained buying by central banks in Asia and the Middle East. 

 

China Indexes and Stocks 

The Hang Seng Index dropped 1.6% to 25,473.09, and the mainland-focused CSI 300 index decreased 1.3% to 4,559.93. 

For the week, the Hang Seng Index extended losses to 0.8%, and the CSI index edged up 1.4%. 

Airline stocks were volatile after September traffic rose more than expected, driven by the sustained rise in domestic demand. 

Air China decreased 0.2% to HK $5.89, China Southern Airlines added 0.7% to HK $4.43, China Eastern Air added 2.2% to HK $3.62, and Cathay Pacific Group fell 1.1% to HK $10.65. 

Domestic airlines advanced despite the potential U.S. ban on use of Russian airspace for arrivals to U.S. destinations, and the U.S. Department of Transportation is likely to expand its list to include Cathay Pacific.