China's Stock Market Faces Tumult Amidst US Tariff Woes

Mainland China and Hong Kong stocks have continued their downward trajectory on Friday, with both markets poised to end the week in negative territory. The decline comes amid softening domestic economic indicators and escalating worries over global trade, particularly due to new tariffs from U.S. President Donald Trump.

The Shanghai Composite Index dropped by 0.19% to 3,566.55 points by midday, while the CSI300 index fell by 0.25%. Similarly, Hong Kong's Hang Seng Index slipped 0.18% to 24,727.78 points, maintaining its negative streak as the market braces for its first weekly drop in six weeks.

Economists warn that U.S. trade policies, including a 20% tariff and 40% transshipment tariff on ASEAN exports, could heavily impact China's trade prospects. Meanwhile, economic data reveals a contraction in China's factory activity for July, signaling a potential slowdown after robust growth earlier in 2025.

(With inputs from agencies.)