China Braces for Tariff Battles Amid Parliamentary Sessions

Chinese stocks dipped amid volatile trading as China and the U.S. prepared for escalating trade tariffs. While key indices showed minor fluctuations, investors anxiously awaited parliamentary sessions in Beijing to gauge policy directions, with concerns over trade tensions and policy stimulus affecting market sentiment.

Chinese stocks edged lower on Monday in volatile trading, coinciding with anticipation of further trade tariff escalations with the U.S. Investors are keenly watching Beijing's upcoming annual parliamentary sessions to discern future policy directions. Onshore stocks, including the Shanghai Composite Index, slipped after modest morning gains.

In contrast, Hong Kong's Hang Seng Index managed a 0.3% recovery despite last Friday's significant drop, while the Hang Seng Tech Index slipped by 0.6%. The market remains tense following President Donald Trump's announcement of an additional 10% tariff on Chinese imports starting March 4, amidst ongoing trade skirmishes.

China is reportedly devising countermeasures, likely targeting American agricultural exports, as reported by the Global Times. Investors are also anticipating potential support measures at the National People's Congress to bolster domestic demand, though expectations remain guarded with a projected growth target similarly subdued.

(With inputs from agencies.)