China's Indexes Extended Weekly Gains as Global Bond Yields Resumed Upward March

Li Chen
21 Aug, 2026
Hong Kong

China's benchmark indexes meandered as investors stayed on the sidelines amid a lack of fresh market catalysts. 

The Hang Seng Index advanced 0.7%, and the mainland-focused CSI 300 Index edged up 0.5% as investors held out for possible stimulative measures from policymakers as early as next Friday. 

The National People's Congress Standing Committee is scheduled to meet in Beijing on August 25-28, and investors are hoping for more concrete steps to revive economic growth after a string of weak economic data was reported for July. 

China's jobless rate, fixed-asset investment, new home prices, retail sales, and industrial production for July confirmed a two-speed economy, and resilient exports were overshadowed by weak domestic demand growth. 

Global bond yields rebounded as investors reassessed the latest move from the U.S. Treasury Department to calm volatility and curb the rise in yields in long-term rates.

The yield on 10-year U.S. Treasury notes retraced to 4.71%, Japanese government bonds edged up to 2.85%, and bond yields in Germany and France rebounded to multi-year highs as the initial support for the U.S. Treasury Department's expanded buyback program faded.

 

China Indexes and Stocks 

The Hang Seng Index increased 0.7% to 25,867.12, and the mainland-focused CSI 300 Index edged up 0.5% to 4,616.83. 

For the week, the Hang Seng Index advanced 2.3%, and the CSI 300 Index edged down 1.2%. 

Banks and financial services providers traded down for the second consecutive session, after the People's Bank of China left its loan prime rates unrevised. 

ICBC, China Construction Bank, and Agricultural Bank of China declined between 0.2% and 0.4%, but HSBC edged up 1.6% to HK $163.30.