Hong Kong stocks rise even as Trump threatens China with tariffs on TikTok deal

US president delays TikTok ban by 75 days and threatens China with tariffs if Beijing does not approve a deal regarding the short-video app

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US President Donald Trump signed numerous executive orders, including a delay on the TikTok ban, on the first day of his presidency in the Oval Office of the White House on Monday. Photo: AFP

Published: 10:53am, 21 Jan 2025Updated: 4:38pm, 21 Jan 2025

Hong Kong stocks rose after US President Donald Trump held off on imposing tariffs on Chinese exports promised during his election campaign, but threatened significant tariffs if Beijing failed to approve a TikTok deal.

The Hang Seng Index gained 0.9 per cent to 20,106.55 at the close on Tuesday, while the Hang Seng Tech Index added 2.1 per cent. On the mainland, the CSI 300 Index rose 0.1 per cent and the Shanghai Composite Index fell 0.1 per cent.

China’s biggest chipmaker Semiconductor Manufacturing International Corporation jumped 6.4 per cent to HK$41.90, while iPhone camera lens maker Sunny Optical gained 7.3 per cent to HK$70.20. Carmakers Li Auto advanced 5.3 per cent to HK$94.10 and Geely Auto added 3.1 per cent to HK$14.74.

China got only one mention in Trump’s inauguration speech and that was to suggest that Chinese operations in the Panama Canal constituted a degree of ownership of the crucial Central American waterway. Trump also signed an executive order on TikTok, delaying the short-video app’s ban by 75 days, and threatened China with tariffs if Beijing failed to approve a deal regarding the app.

The Hang Seng Index has performed quite well in the last few days mainly because of the positive China economic data last week and expectations of improved US-China relations, according to Kenny Wen, head of investment strategy at KGI Asia.

“The upside also reflects the delay in immediate tariffs [on China],” he said, adding that further gains may be limited ahead of the Lunar New Year holiday next week.