CN20250210-Global Stock Markets Decline, but Chinese Assets Show Strength

While global stock markets faced a downturn, Chinese stocks, including U.S.-listed Chinese companies, Hong Kong stocks, and A-shares, showed resilience and recorded gains today.

1. U.S. to Announce New Tariffs This Week

During a meeting with Japan last Friday, the U.S. government indicated that it would announce reciprocal tariffs on certain countries this week. Additionally, a 25% tariff on steel and aluminum imports from all countries is set to be announced on Monday. This news has raised concerns that higher tariffs could contribute to inflation in the U.S., potentially leading the Federal Reserve to delay interest rate cuts. In 2025, tariffs and inflation are expected to be key factors influencing global financial markets.

2. Global Stock Markets Experience Declines

Amid concerns over tariffs, U.S. stock markets dropped significantly, with the Dow Jones, Nasdaq, and S&P 500 falling by 0.99%, 1.36%, and 0.95%, respectively. This downward trend extended to global markets, with European stocks broadly declining. In the Asia-Pacific region, most markets followed the same pattern, except for Hong Kong stocks, which remained relatively stable.

3. Strong Performance of Chinese ADRs and Hong Kong Stocks

Despite the weakness in the U.S. market, Chinese ADRs gained 1.75%. Hong Kong stocks also performed well, with the Hang Seng Index reaching its highest closing level since October 8. Meanwhile, the Shanghai Composite Index closed at 3,489 points on October 8, showing that Hong Kong stocks have been leading the recovery.

4. Technology Stocks Drive Market Gains

Since October 14, the Hang Seng Index has risen for 17 consecutive trading days, gaining over 13% during this period. The primary driver behind this rally has been technology stocks. The Hang Seng Tech Index outperformed, surging 24% in the same timeframe, indicating strong momentum in the tech sector.

5. Mixed Performance in A-Share Market

The A-share market showed a mixed trend in the morning session. As of midday, the Shanghai Composite Index and the STAR Market Composite Index rose by 0.31% and 0.82%, respectively. However, the Shenzhen Component Index and the ChiNext Index declined slightly by 0.1% and 0.35%. Market activity remained robust, with total trading volume reaching RMB 1.11 trillion in the morning session, only RMB 367 billion lower than last Friday. The number of advancing stocks (3,399) exceeded declining stocks (1,814).


The overall outlook for A-shares in 2025 is becoming clearer. International investors are increasingly optimistic about the Chinese stock market, accelerating their investment strategies in A-shares and Hong Kong stocks. Domestically, market recovery is evident, with more funds entering the market. Trading volumes have also increased significantly, surpassing RMB 800 billion compared to the last trading day before the holiday.

As the Consumer Price Index (CPI) stabilizes and the post-holiday manufacturing season begins, further policy measures are expected to support economic growth. The market is looking forward to a technology-driven bull run in 2025.