hong kong's hang seng boosted by us rally, china trade worries linger

2025-04-10 general

hong kong, Thursday, 10 April 2025.
hong kong stocks experienced gains today, mirroring the positive trend in the us markets. The hang seng index rose 1.79%, reaching 20,628.86. This increase was spurred by president trump’s decision to temporarily suspend reciprocal tariffs for some countries. China, however, was excluded from this grace period. This exclusion intensifies existing us-china trade tensions. Some analysts are recommending investors to ‘sell high’ in response to the market’s current conditions.

market sentiment and fund flows

Southbound funds, which invest from mainland china into hong kong stocks, showed a strong net inflow of hk$134.63 billion in april [3]. on april 9 alone, these funds contributed a record single-day net inflow of hk$35.86 billion [3]. consumer discretionary, information technology, and financial sectors were the primary targets of these investments [3]. this indicates strong confidence from mainland investors in hong kong’s market, potentially driving up stock values in these specific sectors.

expert opinions and technical analysis

market analysts hold mixed views. bob elliott, a former executive at bridgewater, suggests it may be time to ‘sell high’ [3]. conversely, some investors anticipate further gains [5]. one investor, ‘老杨’, expects the hang seng index to open high and sees a strong resistance level at 21400 [5]. another investor, ‘老股’, claimed to have profited from a 600-point drop in hang seng index short positions and anticipates the index falling below 20000 [5]. these contrasting views highlight the current market volatility and uncertainty.

adr performance and crypto market influence

the hang seng index adr (.hsiadr) closed at 20,429.475 on april 9, 2025, reflecting an increase of 164.985 points, or 0.81% [2]. the adr’s 52-week range is between 16,169.146 and 24,848.978 [2]. some market analysts attribute the recent market rise to positive sentiment surrounding developments in the crypto market [2]. the perceived stability in the crypto market may be indirectly boosting confidence in other sectors, including the hong kong stock market [2].

potential impacts of us-china trade tensions

the exclusion of china from the tariff suspension could have multifaceted impacts. while the immediate effect might be limited due to the boost from the us stock rally, prolonged trade tensions could deter foreign investment and negatively affect chinese companies listed in hong kong [1]. investors should closely monitor policy changes and trade negotiations between the us and china, as these factors could significantly influence market sentiment and stock valuations [alert! ‘this is a general assessment based on the news, but specific impacts are difficult to predict without more information.’] [1].

Bronnen

hang seng us-china trade