China, HK stocks book steepest weekly losses

SHANGHAI: Mainland China and Hong Kong stocks extended their declines on Friday, posting their steepest weekly losses since April, weighed down by soft domestic economic data and worries over global trade following US President Donald Trump’s new tariffs.

At the close, the Shanghai Composite index had fallen 0.37% to 3,559.95 points, while the blue-chip CSI300 index had lost 0.51%.

For the week, the SSEC slipped by 0.94% and the CSI300 dropped by 1.75%. Both indexes booked their first weekly losses in six, and were down by the most since early April when Trump first initiated reciprocal tariffs.

In Hong Kong, the Hang Seng index tumbled 1.07% to 24,507.81 points, while the Hang Seng China Enterprises index fell 0.88% to 8,804.42 points.

For the week, the benchmark HSI plummeted 3.47%, recording the first weekly loss in a month and dropping by the most since early April.

Trump slapped steep tariffs on exports from dozens of trading partners, pressing ahead with his plans to reorder the global economy ahead of a Friday trade deal deadline.

“The US deals with other economies will also affect China’s trade outlook,” economists at ANZ said in a note on Friday.

“If the US fully enforces around 20% tariffs and 40% transshipment tariffs on ASEAN, which accounted for 17.8% of China’s exports in the first half of this year, the supply chain activity in the region will be strained.”

Meanwhile, the United States believes it has the makings of a trade deal with China, but it is “not 100% done,” US Treasury Secretary Scott Bessent said on Thursday.

China’s factory activity contracted in July, both official and private surveys showed, suggesting the economy lost momentum following robust growth in the first half of the year.

“After a more resilient than expected trade environment in the first half of 2025, momentum could soften a bit further in July,” said Lynn Song, chief economist for Greater China at ING, noting market attention will be shifted to trade data due next Thursday for more clues on the health of the broad economy.

Around the region, MSCI’s Asia ex-Japan stock index was weaker by 1.41%, while Japan’s Nikkei index closed down 0.66%.