SHANGHAI: China and Hong Kong stocks ended roughly flat on Monday as weak data on China industrial and retail sales highlighted ongoing economic challenges, although the Sino-US tariff reprieve continued to lift shares of port operators.
China’s blue-chip CSI300 Index dipped 0.3%, while the Shanghai Composite Index was barely changed. Hong Kong’s benchmark Hang Seng was little moved.
China and Hong Kong markets have recovered ground lost since Donald Trump’s tariff announcement in early April, after Beijing and Washington later agreed a 90-day tariff pause last week. But the rally appears to be losing steam.
Official data showed on Monday that growth in China’s industrial output and retail sales slowed in April, curbing risk appetite.
Guosheng Securities cautioned investors against chasing stocks “before concrete evidence points to a better-than-expected economy.”
“Fluctuation within a wide range remains our base case scenario,” the brokerage wrote.
But shares of Chinese port operators continued to surge, as investors doubled down on bets that the 90-day tariff pause will spur a rush in shipments.
Lianyungang Port, Ningbo Port and Zhuhai Port all hit their daily upward limit of 10%. Shares of other major port operators such as China Merchants Port Group and Shanghai International Port also rose sharply.
“Exporters may continue to boost production and delivery in the next few months in case tariffs are hiked again down the road,” said Zhiwei Zhang, president at Pinpoint Asset Management.
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