Hong Kong stocks rose on Thursday, defying the impact of new US tariffs on car imports imposed by President Donald Trump and the heavy overnight losses seen on Wall Street. Investors appeared to shrug off the concerns surrounding the tariffs, showing optimism in the region’s market.
The Hang Seng Index increased by 1%, reaching 23,729.33 at the noon break, marking a second consecutive day of gains. The Hang Seng Tech Index also climbed by 1.3%, settling at 5,647.45. On mainland China, the CSI 300 Index gained 0.4%, and the Shanghai Composite Index saw a modest rise of 0.3%.
Mixed Reactions from Chinese Electric Vehicle Makers
Chinese electric vehicle (EV) manufacturers saw mixed performance as the impact of the new US tariffs was expected to be relatively limited, given their minimal exposure to the US market. Key players in the sector showed positive momentum:
- Li Auto rose by 2.4%
- BYD was up 2.3%
- Geely Auto gained 0.2%
However, Xiaomi saw a 2.8% drop, and Nio declined by 3.6%, highlighting the varying impacts across different tech and EV stocks.
CK Hutchison Holdings Gains After Port Deal News
CK Hutchison Holdings saw a 1.2% increase, reaching HK$45.85, following reports that the Hong Kong government and the company were in discussions regarding the sale of its controversial port assets. This includes two Panama ports being sold to a consortium led by US investment firm BlackRock.
Trump’s Tariff Announcement and Market Reaction
On Wednesday, President Trump signed an executive order imposing a 25% tariff on all cars not made in the US, effective April 2, aiming to spur growth. Despite this, Kenny Ng, a strategist at Everbright Securities, stated that the Hong Kong stock market has already stabilized following the previous pullback. Ng also mentioned that the market had been given sufficient time to digest the tariff issue, with much uncertainty remaining around its actual implementation.
Furthermore, there were signs of potential relief for China. Trump hinted at a possible tariff reduction for China, contingent upon the sale of the popular short-video platform TikTok. The US had previously set a deadline for TikTok’s Chinese parent company, ByteDance, to divest from the app by January 19. Trump later granted a 75-day grace period, which is set to expire on April 5, but he has since suggested the possibility of extending the deadline.
Notable Stock Performances
Bank of China (Hong Kong) surged by 7.5%, reaching HK$32.10, after reporting a modest 12% profit rise to HK$38.2 billion (approximately US$4.91 billion) in 2024.
Haidilao, a popular hotpot restaurant chain, rose by 6.5% to HK$18.76, boosted by a 4.6% annual profit increase.
Debuts and Market Activity
Three companies made their market debuts:
In Shenzhen, Zhejiang Huaye Plastics Machinery, which manufactures high-speed resistant screws, barrels, and tie bars, saw its stock surge by 182.6%, closing at 58.97 yuan.
Zhejiang Huayuan Auto Technology, a maker of car components, soared by 428.2% to 25.99 yuan.
In Hong Kong, Soft International Group, a manufacturer of personal hygiene products, rose by 25.5% to HK$0.64.
Global Market Trends
Elsewhere in the Asia-Pacific region, markets followed the negative trends from Wall Street, where the Nasdaq dropped 2% and the S&P 500 Index declined 1.1%. In other key markets:
Japan’s Nikkei and South Korea’s Kospi both retreated by 1%.
Australia’s S&P/ASX 200 fell 0.4%.
Overall, despite global pressures and concerns around the US tariffs, the Hong Kong stock market remained resilient, buoyed by investor optimism in local and Chinese stocks.
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