China and Hong Kong stocks rose on Tuesday, tracking broader gains in Asia, as investors looked past the latest shift in US President Donald Trump’s tariff plans and welcomed Beijing’s new measures to curb price wars.
China’s blue-chip CSI300 Index.CSI300 climbed 0.7% by the lunch break, while the Shanghai Composite Index.SSEC gained 0.6%. Hong Kong benchmark Hang Seng.HSI was up 0.8%.
The market reaction in Asia was rather muted after US President Donald Trump on Monday began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher US tariffs will start on August 1, marking a new phase in the trade war he launched earlier this year.
China’s top leaders pledged last week to step up regulation of aggressive price-cutting by Chinese companies, as the world’s second-biggest economy struggles to shake off persistent deflationary pressures.
Shares of solar manufacturers led gains onshore, with Tongwei 600438.SS up 10%, after China’s industry ministry pledged to curb disorderly low-price competition in the photovoltaic industry.
Deeper policy efforts to curb excessive competition are expected to help rebalance industrial supply and demand, support a rebound in producer prices, and improve long-term earnings expectations for A-shares, analysts at Huaxi Securities said in a note.
Semiconductor shares.CSIH30184 also rose, up 1.1%, as a slew of companies posted upbeat profit alerts.
Consumer-related shares climbed in Hong Kong, as subsidies from food delivery platforms boosted consumer demand. Xiabuxiabu 0520.HK, a hotpot restaurant, rose nearly 7%.
Hang Seng Tech Index HSTECH was up 1.3%.
Traders are watching for China’s key inflation data due on Wednesday to gauge the health of the world’s second-largest economy in the face of persistent deflation pressure and trade risks.
