Climbing in trade war impacts scholarships, but Chinese government stimuli help contain losses in Hong Kong and the continental market
The stock markets of Hong Kong and China presented a recovery on Friday (11.br.2025), reversing previously registered losses and softening the negative balance of the week. The appreciation of semiconductor roles and the possibility of state intervention through strategic purchases have helped to contain the impacts of the climb of trade war on the United States on stock exchanges.
Hang SENG, the main index of the Hong Kong scholarship, ended the trading session with a 1.1% increase after retreating up to 1.2% in the early trading hours. The technology segment, represented by the HSTECH Under Index, was appreciated of 1.8%. Among the positive highlights were semiconductor manufacturers: Hua Hong Semiconductor’s shares have gone over 20% throughout the day, closing 14%. SMIC’s papers, on the other hand, recorded an increase of 6%.
The US cannot act recklessly, and the wheel of history cannot go back, said China Foreign Minister Wang Yi on US tariffs, according to the Reuters.
Even with the recent recovery, the Hong Kong rate has accumulated a drop of 8.5% a week – the worst performance since February 2018. CSI 300, which brings together the main actions of mainland China, recorded its largest weekly retreat in four months. To try to contain the losses, the Chinese government has intensified stabilization measures, using state funds and public holdings to make purchases in the stock market.
Some companies have also announced stock repurchase programs as a support. On Friday (11.abr), the Chinese government raised tariffs on products imported from the United States to 125%, in retaliation of the president’s decision to increase rates on Chinese items to 145%.
In Europe, actions reduced initial gains, leaving the Stoxx 600 falling almost 1% in the day and falling 1.7% this week, one of the most volatile ever recorded. In Asia’s stock exchanges, Japan’s Nikkei plummeted 4.3% on the day, while South Korea shares retreated almost 1%. The euro rose 1.7%to $ 1.13855, a level last seen in February 2022, and gold, seen as a safe asset in crisis, reached another record.
Investors are concerned about the escalation of the trade war between China and the USA, after US President Donald Trump increased tariffs on Chinese imports, effectively raising them to 145%, according to Reuters. China reacted, raising its US fees to each Trump increase, generating fears that Beijing can raise tariffs above the current 84%.
Chinese president Xi Jinping, in his first public comments on the subject since Trump launched his tariff offensive last week, said there could not be “Winners” In no trade war and said the EU played a key role to play to ensure global economic stability.
“China and EU must fulfill its international responsibilities, jointly safeguard the trend of economic globalization and the international trade environment and jointly oppose unilateral acts of intimidation.”Xi said in a meeting with the president of Spain, Pedro Sánchez, this Friday (11.abr).
