Hang Seng Index trims some losses in worst week in 7 years in festering US-China trade war

Hong Kong’s benchmark stock index closed up on Friday, trimming some of the losses that capped its worst week in more than seven years, as the tit-for-tat tariff war between the world’s two largest economies shows no sign of abating.

The Hang Seng Index advanced 1.1 per cent to 20,914.69 on Friday. The late rally helped narrow the loss for the week to 8.5 per cent, the worst since February 9, 2018. The index has declined 15.6 per cent from a peak on March 19, erasing HK$4.4 trillion (US$567.3 billion) of market value from its 83 members.

The Hang Seng Tech Index, which tracks technology stocks such as Alibaba Group Holding and Xiaomi, rose 1.8 per cent. The CSI 300 Index, which tracks the 300 largest mainland-listed firms, advanced 0.4 per cent, while the Shanghai Composite Index, added 0.5 per cent.

Electric-car maker BYD jumped 7.2 per cent to HK$368.80 and peer Li Auto advanced 5.6 per cent to HK$90.15, while China’s biggest chipmaker SMIC strengthened 5.9 per cent to HK$46.70. Among losers, Trip.com slumped 4.6 per cent to HK$427.40, while Alibaba Group Holding lost 1.7 per cent to HK$103 and Meituan fell 1.3 per cent to HK$143.50.

Mainland investors were net buyers of HK$11.7 billion worth of Hong Kong-listed shares via the Stock Connect scheme on Friday, according to stock exchange data. That brought their buying spree this week to HK$82.27 billion, even as traders braced for more US-China hostility and heightened recession risks.

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Stock markets in Asia resume slump as hefty US tariffs on China take effect

Stock markets in Asia resume slump as hefty US tariffs on China take effect

Goldman Sachs cut its growth forecast for China for 2025 and 2026 on Thursday, citing the tariff war, while Morgan Stanley said the trade spat could derail a recovery in corporate earnings. Beijing still has room to expand its fiscal stimulus to defend the economy, according to ANZ Group.