HONG KONG: China and Hong Kong stocks rose on Monday as US tariff exclusions for some electronics products from President Donald Trump’s reciprocal tariffs on China lifted tech shares, although the chip sector was weighed down by national security concerns.
China’s blue-chip CSI300 Index climbed 0.6%, while the Shanghai Composite Index gained 0.8% in early trade, after losing 2.9% and 3.1% last week, respectively.
Hong Kong benchmark’s Hang Seng climbed 2.5% after an 8.5% loss last week. The Hang Seng Tech Index added 3%. Trump’s administration granted exclusions from steep tariffs on smartphones, computers and other electronics imported largely from China, while indicating these goods will come under separate tariffs, along with semiconductors, that may be imposed within a month. China’s Apple suppliers jumped on the temporary relief. The CSI Electronics Index jumped 0.7% in early trade.
Apple’s main assembly partner Foxconn Industrial Internet rallied 1.7%, and acoustic components manufacturer Goertek jumped 3.1%. The CSI Semiconductor Index declined as much as 0.9% after Trump said that chips from China will face national security probe.
The news of the exemption “fuels expectation of potential improvement in trade relations, and even the prospect of trade negotiations,” said Li Shuding, an investor adviser of Galaxy Securities.
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