Investors Look Beyond Trump-Xi Meeting, HKMA Trims Interest Rates

Li Chen
30 Oct, 2025
Hong Kong

Stocks in China and Hong Kong advanced as investors reviewed the latest rate actions by the U.S. Federal Reserve.

The Hang Seng Index increased 0.4%, and the mainland-focused CSI 300 index edged up 0.3% as investors lowered their expectations of a breakthrough following a meeting between leaders of China and the U.S. 

The Trump-Xi meeting got underway in Busan, South Korea, on Thursday, as both leaders seek to lower trade tensions and finalize a trade framework agreement. 

Over the past week, investors have boosted stock prices, anticipating a concession from the U.S. president to reduce the exorbitant trade tariffs on Chinese goods. 

However, Donald Trump's erratic trade policy and unstructured style of managing trade have unnerved Chinese policymakers and lowered expectations for a definitive solution. 

Chinese policymakers are focused on long-term development while maintaining social stability, and they have adopted a trade stance that the Trump administration will not be there forever.  

The Hong Kong Monetary Authority lowered the base rate by 25 basis points, following a similar rate cut by the U.S. Federal Reserve. 

The Federal Reserve lowered its fed funds rate range to between 3.75% and 4.0%, and Fed Chair Jerome Powell signaled that a rate cut at the next policy meeting in December may not materialize. 

 

China Indexes and Stocks 

The Hang Seng Index increased 0.4% to 26,451.16, and the mainland-focused CSI 300 index advanced 0.3% to 4,754.15. 

Zijin Mining Group increased 4% to HK $32.62, China Shenhua Energy advanced 3% to HK $42.26, and SMIC decreased 0.6% to HK $79.60. 

Alibaba Group Holding increased 1.7% to HK $173.80, Tencent Holdings added 2.2% to HK $660.50,