SHANGHAI: China and Hong Kong stocks barely moved on Monday after Beijing pledged to stabilise capital markets without announcing fresh stimulus to counter higher US tariffs.
Asia shares edge up; dollar at mercy of US trade whims
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Buoyed by state-backed buying, the China market has bounced roughly 8% since early April, when US President Donald Trump’s “reciprocal tariffs” slammed global shares.
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But the rebound is losing steam in the absence of additional policy support from Beijing, or visibility on whether China and the US will begin trade talks, let alone reach a deal.
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Both China’s blue-chip CSI300 Index and the Shanghai Composite Index ended the morning session roughly flat.
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In Hong Kong, the benchmark Hang Seng Index was also little moved.
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China’s top policymakers pledged on Friday to support firms and workers most affected by the impact of triple-digit US tariffs and urged the country to prepare for worst-case scenarios.
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The ruling Communist Party’s Politburo also vowed to stabilise and invigorate capital markets, but there was no announcement of additional support measures.
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Beijing’s stabilisation efforts have put a floor under Chinese shares, but extending the headroom requires either massive capital inflows, or “really good news to rebuild confidence” sapped by the Sino-US trade war, said Zheshang Securities strategist Wang Daqi.
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US Treasury Secretary Scott Bessent on Sunday did not back President Donald Trump’s assertion that tariff talks with China were under way and said he did not know if the US president had talked to Chinese President Xi Jinping.
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Beijing called on Washington to remove the tariffs to create space for talks while also granting some exemptions on US imports from 125% counter-tariffs.
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China’s artificial intelligence and chip-making stocks rose after Chinese President Xi urged efforts to promote the development of AI and chip-making technologies.
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Property shares tumbled on dashed hopes for fresh, imminent monetary easing.
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