Hong Kong stocks slip on manufacturing wobble as China vows more policy support

Name: Trump threatens new anti-drug tariffs on ‘day 1’ for China, Canada, Mexico
Uploaded: 2025-01-06T02:29:15.000Z
Duration: 2 min 54 s
Description: Trump threatens new anti-drug tariffs on ‘day 1’ for China, Canada, Mexico

Stocks added to losses in the opening week of 2025 as reports showed Chinese manufacturing growth cooled last month

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Published: 10:29am, 6 Jan 2025Updated: 5:46pm, 6 Jan 2025

Hong Kong stocks fell after reports showed growth in Chinese manufacturing lost momentum last month, suggesting stronger policy actions may be needed to overcome concerns about deflation and export barriers.

The Hang Seng Index slipped 0.4 per cent to 19,688.29 on Monday, adding to a 1.6 per cent loss in the first trading week of 2025. The Tech Index declined 0.2 per cent while the Shanghai Composite Index lost 0.1 per cent.

Bottled water producer Nongfu Spring slumped 3.4 per cent to HK$32.50 while brewer China Resources Beer tumbled 3.7 per cent to HK$23.15 and food delivery group Meituan retreated 2 per cent to HK$150.70. Limiting losses, e-commerce operator JD.com gained 1.1 per cent to HK$135.70 and online travel agency Trip.com rose 0.8 per cent to HK$520.50.

While China’s economy showed tentative signs of recovery last quarter, the outlook remains cloudy as policymakers struggle to convince consumers to spend. Export bans on certain materials have also undermined the outlook for external trade, two weeks before president-elect Donald Trump takes over the White House.

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Trump threatens new anti-drug tariffs on ‘day 1’ for China, Canada, Mexico

“Sentiment was damped a bit as a concrete stimulus policy has yet to come, though the authorities vows to ramp up efforts to lift the consumption sector,” said Ka Liu, head of advisory support at Citibank Hong Kong. “A slower pace of export growth is expected” in response to Trump’s tariff threats, he added.