China's Indexes Edged Lower as Investors Adjust to Rate Decisions from Major Central Banks

Li Chen
17 Sep, 2026
Hong Kong

China's indexes struggled to advance on Thursday ahead of high-level U.S.-China trade talks this weekend. 

The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index eased 0.3%. 

U.S. Secretary of State Scott Bessent is scheduled to meet China's Vice Premier He Lifeng for final preparatory discussions before the September 24 summit between the leaders of the U.S. and China.

The meeting in Washington, D.C., is expected to improve trade relations between the two countries; however, investors remained cautious amid lingering uncertainties over tariffs, sanctions, and geopolitical tensions. 

Bond yields remained in focus after the Federal Reserve raised interest rates for the first time since July 2023 amid persistent inflation.  

The Federal Reserve unanimously voted to raise its benchmark interest rate by 25 basis points, shifting monetary policy in response to persistent inflationary pressures and a tightening labor market. 

The rate-setting committee raised the Fed funds rate range to between 3.75% and 4.0%, as the Fed struggled to lower inflation to its target rate of 2%.  

16 of 18 members of the committee indicated plans for at least one additional hike later this year, though they project holding rates steady throughout the following year despite inflation remaining above their long-term target.

China lowered its holdings of U.S. Treasuries to an 18-year low, as overall holdings by foreign countries for a second consecutive month amid deepening worries over the level and sustainability of the U.S. government debt. 

China’s Treasury debt holdings fell to $618 billion in July from $633.4 billion in June, data released by the US Treasury Department showed on Wednesday.

Meanwhile, overall foreign holdings of US Treasuries dropped to $9.25 trillion in July, down from $9.3 trillion in June, the U.S. Treasury Department said.

Official data showed the People’s Bank of China increased its bullion holdings for the 22nd month in a row in August, lifting the total to 76.73 million troy ounces.

 

China Indexes and Stocks 

The Hang Seng Index decreased 1.1% to 24,448.27, and the mainland-focused CSI 300 Index decreased 0.3% to 4,468.12. 

Alibaba Group decreased 1.3% to HK $104.80, Tencent Holdings dropped 1.7% to HK $426.0, Luxshare Precision Industry fell 2.2% to HK $57.20, and Zhongji Innolight eased 0.2% to HK $1,134.0.