China's Indexes Lost Momentum Amid Global Headwinds and Earnings Worries

Li Chen
26 Mar, 2026
Hong Kong

Stocks turned lower, and investors stayed on the sidelines amid conflicting statements from the U.S. and Iran to end the war. 

The Hang Seng Index decreased 1.4%, and the mainland-focused CSI 300 Index decreased 0.5% amid growing skepticism about the U.S. peace plan. 

Brent crude oil prices rose 1.5% to 1.6% to $106.87 a barrel as Iran rejected the U.S. claims of ceasefire talks, and the embattled nation demanded $100 billion in war reparations and fees for the passage of oil cargo ships through the Strait of Hormuz. 

At least 30% to 40% of energy infrastructure is destroyed in the Middle East after Iran stepped up its attacks in retaliation to the U.S.-Iran joint strikes. 

Market sentiment also suffered from corporate results, as investors expressed concerns about future earnings growth. 

 

China Indexes and Stocks 

The Hang Seng Index decreased 1.4% to 24,988.04, and the mainland-focused CSI 300 Index declined 0.5% to 4,516.10.

Haidilao International decreased 1.4% to HK $14.01, and the restaurant chain operator reported a 14% decline in 2025 net income. 

Pop Mart International Group dropped 9.5% to HK $152.60 after the company's annual results fueled anxieties about the over-reliance on Labubu products for future growth. 

Hesai Group declined 3.5% to HK $160.40, and the largest maker of lidar sensors reported record revenue in the fourth quarter, but the company's elevated research and development.

The key supplier of Xiaomi’s auto unit – swung to a net profit of 435.9 million yuan in 2025 from a net loss of 102 million yuan a year earlier. 

The surge in annual demand for lidar (laser distance and ranging) units, which are used to sense distance in cars and robots, lifted shipments by 223% to 1.62 million units.

Xiaomi Corp. rose 0.7% to HK $32.76, and the smartphone maker reported a 27% drop in fourth-quarter profit to 6.5 billion yuan or $943 million. 

The company said a sharp jump in memory prices is likely to force smartphone makers to pass higher prices to consumers and accelerate industry consolidation. 

The average smartphone selling price decreased 2.2% to 1,176 yuan from 1,202 yuan a year ago despite the company's shift to premium models.