China, HK shares close up as Beijing’s efforts to curb price wars lift sentiment

SHANGHAI: China and Hong Kong stocks ended higher on Tuesday, tracking broader gains in Asia, as investors looked past the latest shift in US President Donald Trump’s tariff plans and welcomed Beijing’s new measures to curb price wars.

China’s blue-chip CSI300 Index closed up 0.8%, while the Shanghai Composite Index gained 0.7%. Hong Kong’s benchmark Hang Seng was up 1.1%.

Market reaction in Asia was rather muted after Trump on Monday began telling trade partners - from powerhouse suppliers like Japan and South Korea to minor players - that sharply higher US tariffs will start August 1, marking a new phase in the trade war he launched earlier this year.

China’s top leaders pledged last week to step up regulation of aggressive price-cutting by Chinese companies, as the world’s second-biggest economy struggles to shake off persistent deflationary pressures.

Shares of solar manufacturers led gains onshore, with Tongwei up 10%, after China’s industry ministry pledged to curb disorderly low-price competition in the photovoltaic industry.

Deeper policy efforts to curb excessive competition are expected to help rebalance industrial supply and demand, support a rebound in producer prices, and improve long-term earnings expectations for A-shares, analysts at Huaxi Securities said in a note.

Semiconductor shares also rose, up 1.2%, as a slew of companies posted upbeat profit alerts.