What’s going on here?
On April 22, 2025, China’s and Hong Kong’s stock markets showed resilience, standing firm despite Wall Street’s retreat and modest losses in other Asian markets.
What does this mean?
The Shanghai Composite Index managed a 0.3% rise to 3,301.59 points at midday, buoyed by banking and liquor sectors, while the CSI300 index hovered around its current levels. In Hong Kong, the Hang Seng Index posted a slight loss, dropping less than 0.1%, accompanied by a 0.5% dip in the Hang Seng Tech Index. JD.com and Meituan faced sharper declines, each plummeting 6.6% amid growing competitive challenges. The presence of China’s ‘national team’ alongside private retail investors was pivotal in steadying the markets against persistent Sino-US trade tensions. Meanwhile, Japan’s Nikkei Index fell 0.3%, and MSCI’s Asia-Pacific index outside Japan slid by 0.2%. A BNY senior markets strategist noted a ‘mild risk-off’ sentiment in the Asian arena, focusing on US tariff talks.
Why should I care?
For markets: Stability amid global ripples.
As the US and China continue their trade negotiations, markets globally remain vigilant. The Shanghai and Hong Kong markets’ relative stability suggests strong backing from domestic investors, providing a buffer against international economic uncertainties. This resilience might attract investors seeking opportunities in steadier environments amid Wall Street’s fluctuations.
The bigger picture: Asian markets ride the trade wave.
While US tariff discussions are leading to caution across Asia, China’s proactive market strategies are bolstering confidence domestically. This highlights an ongoing shift where Asian markets, particularly Shanghai and Hong Kong, play a growing role in global economic stability, standing resilient in the face of geopolitical tides influencing trade and investment flows.
