Trade Tensions Rattle Hong Kong Markets Amid Sino-U.S. Tariff Spat
Chinese stocks in Hong Kong fell to nearly a one-month low due to escalated Sino-U.S. trade tensions. Beijing condemned U.S. tariff accusations, promising to defend its rights. Stock indices and the yuan declined as investors reacted to renewed trade disputes, affecting sectors like technology and real estate.
Chinese stocks listed in Hong Kong took a hit, nearing a one-month low on Monday, amid resurfaced Sino-U.S. tariff tensions that dampened market sentiment.
The tensions reignited after a confrontation over tariffs, with China's Commerce Ministry dismissing U.S. President Donald Trump's claims of broken agreements from Geneva talks. The ministry labeled these accusations as "groundless" and pledged to take "forceful measures" to protect China's legitimate rights. Scheduled discussions between U.S. President Donald Trump and Chinese President Xi Jinping were expected soon to address trade disputes, including disagreements over critical minerals, Treasury Secretary Scott Bessent stated over the weekend.
Hong Kong's Hang Seng China Enterprises Index, which monitors mainland companies listed in the city, dropped 2.6%, reaching its lowest since May 6. Concurrently, the main Hang Seng Index decreased by 2.2% to 22,778.45. The offshore yuan depreciated by approximately 0.2% in Asian trading hours, while the Hong Kong dollar remained on the weaker side of its trading band. Mainland markets were closed for the Dragon Boat Festival, set to resume on Tuesday. Monday saw widespread declines, with notable falls in the Hang Seng Tech Index, property, and healthcare sectors.
(With inputs from agencies.)
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