China's Economic Growth Accelerated to 5% In First Quarter Despite Middle East Tensions

Li Chen
16 Apr, 2026
Hong Kong

Stocks in mainland China and Hong Kong rebounded and approached a four-year high supported by upbeat economic data and optimism over the U.S.-Iran negotiations. 

The Hang Seng Index advanced 1.5%, and the mainland-focused CSI 300 Index edged up 0.8% after the statistics bureau released an economic growth update. 

China's economy expanded 5% from a year ago in the first quarter, accelerating from 4.5% in the previous quarter, according to the National Bureau of Statistics.

So far the economy has managed to absorb supply disruptions and energy-driven inflation, but the weakness in retail sales and consumer sentiment kept the economic growth uneven.

The sharp slowdown in export growth is likely to worsen in the current quarter amid ongoing tensions in the Middle East and uncertainties related to the U.S. tariffs. 

 

China's Persistent Residential Price Deflation Extended March

China's new home prices across 70 cities fell 3.4% from a year ago in March, according to a separate report by the statistical agency.

New home prices fell for the 33rd month in a row, despite Beijing's policy support and financial incentives from the People's Bank of China.

Prices declined in Beijing by 2.1% compared to 2.3%; in Guangzhou, dropped by 4.7% compared to 5.1%; in Shenzhen, 5.5% compared to 5.5%; in Chongqing, by 4.4% compared to 3.8%; and in Tianjin, by 4.8% compared to 4.2% in February, respectively. 

However, prices in Shanghai rose at a slower rate of 3.7% compared to 4.2% in February.

 

China Indexes and Stocks 

The Hang Seng Index increased 1.5% to 26,339.60, and the mainland-focused CSI 300 Index edged up 0.8% to 4,723.88. 

Sigenergy Technology soared more than 90% to HK $623.00 after the Shanghai-based integrated solar power system provider for households raised its initial public offering price at HK $324 per share. 

The company sold 13.57 million shares and raised HK$4.4 billion in gross proceeds. 

Alibaba Group soared 5%, Tencent Holdings advanced 3%, and Baidu Inc. jumped 7.5%.