Calm Amid Tensions: China Stocks Steady Despite U.S. Trade Talks
China stocks maintained a cautious stance as the Sino-U.S. trade talks continue. Despite a momentary reduction in tariff threats, investors remain vigilant. The Hang Seng Index declined, while China's CSI300 and Shanghai Composite slightly climbed. Analysts suggest cautious market behavior will persist amidst trade negotiations and industry issues.
- Country:
- China
China's stock markets exhibited stability on Wednesday, even as concerns over Sino-U.S. trade tensions persisted. A temporary easing of tariff threats earlier this month provided limited respite, yet investors remained cautious. Hong Kong's Hang Seng Index recorded a 0.6% decline, while the CSI300 and Shanghai Composite indices experienced marginal gains of 0.1% by lunchtime.
Analysts from Citic Securities expressed that the U.S.-China negotiations are expected to continue in a tug-of-war manner. However, with low capital activity and seasoned investors following April's volatility, disruptions are unlikely to significantly unsettle market risk appetite. President Trump's past trade maneuvers have changed the landscape, positioning future negotiations as a complex dynamic, according to Olivier Blanchard of the Peterson Institute for International Economics.
Tensions in the auto industry also unfolded as an intensifying price war in China spurred unease. Shares of electric car makers, including BYD and Li Auto, saw significant declines. Conversely, Xiaomi reported notable first-quarter gains, benefitting from a strategic shift towards higher-end products.
(With inputs from agencies.)
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