Chinese shares traded in Hong Kong fell on Monday, as heightened US-China trade tensions jolted market sentiment.
The Hang Seng China Enterprises Index dropped as much as 2.9%, the most in more than six weeks, led by losses in technology and electric vehicle companies. The index underperformed all of its Asian peers, with the MSCI Asia Pacific Index down 0.8%. The onshore market is closed for a holiday on Monday.
Negotiations between the world’s two largest economies have deteriorated as they accused each other of walking away from the terms of their trade truce last month. President Donald Trump told reporters Friday that China “violated a big part of the agreement” the countries made in Geneva, while expressing confidence that a talk with Chinese President Xi Jinping could ease tensions.
The Trump administration’s plans to broaden restrictions on China’s tech sector, with new regulations to capture subsidiaries of companies under US curbs, and place limits on Chinese students’ visas — also weighed on investor concerns.
The Chinese government called on the US to immediately correct “discriminatory” measures and uphold the consensus reached at their Geneva talks, it said in a statement Monday.
Chinese Stocks in HK Fall to 1-Month Low on Trade Tensions
Chinese stocks’ weakness reflects “growing pressure and concern, such as renewed chip curbs,” said Billy Leung, investment strategist at Global X ETFs in Sydney. “In the near term, trade uncertainty, property weakness, and June liquidity stress could keep foreign flow light.”
China’s residential property sales continued to fall in May, signalling the real estate slump is still weighing on an economy that’s under pressure from deflation and trade tensions.
Despite a recent selloff, the offshore Chinese stocks gauge is still among the world’s top gainers so far this year, fueled by hopes for further domestic stimulus and artificial intelligence-driven optimism from local startup DeepSeek’s breakthrough. The HSCEI and the Hang Seng Index are both up over 12% year-to-date, beating a 6.7% gain in the MSCI Asia Pacific Index.
A wave of listings by Chinese companies in Hong Kong is also stirring anticipation that a robust pipeline of debuts will drive the broader stock market higher.
Also Read: Oil gains as geopolitical concerns rise, OPEC+ boosts supply
The Hang Seng China Enterprises Index dropped as much as 2.9%, the most in more than six weeks, led by losses in technology and electric vehicle companies. The index underperformed all of its Asian peers, with the MSCI Asia Pacific Index down 0.8%. The onshore market is closed for a holiday on Monday.
Negotiations between the world’s two largest economies have deteriorated as they accused each other of walking away from the terms of their trade truce last month. President Donald Trump told reporters Friday that China “violated a big part of the agreement” the countries made in Geneva, while expressing confidence that a talk with Chinese President Xi Jinping could ease tensions.
The Trump administration’s plans to broaden restrictions on China’s tech sector, with new regulations to capture subsidiaries of companies under US curbs, and place limits on Chinese students’ visas — also weighed on investor concerns.
The Chinese government called on the US to immediately correct “discriminatory” measures and uphold the consensus reached at their Geneva talks, it said in a statement Monday.
Chinese Stocks in HK Fall to 1-Month Low on Trade Tensions
Chinese stocks’ weakness reflects “growing pressure and concern, such as renewed chip curbs,” said Billy Leung, investment strategist at Global X ETFs in Sydney. “In the near term, trade uncertainty, property weakness, and June liquidity stress could keep foreign flow light.”
China’s residential property sales continued to fall in May, signalling the real estate slump is still weighing on an economy that’s under pressure from deflation and trade tensions.
Despite a recent selloff, the offshore Chinese stocks gauge is still among the world’s top gainers so far this year, fueled by hopes for further domestic stimulus and artificial intelligence-driven optimism from local startup DeepSeek’s breakthrough. The HSCEI and the Hang Seng Index are both up over 12% year-to-date, beating a 6.7% gain in the MSCI Asia Pacific Index.
A wave of listings by Chinese companies in Hong Kong is also stirring anticipation that a robust pipeline of debuts will drive the broader stock market higher.
Also Read: Oil gains as geopolitical concerns rise, OPEC+ boosts supply
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