Stocks Stumble as US Tariffs Loom: Impact on China's Market

China and Hong Kong stocks fell amid investor concerns about new U.S. tariffs affecting the global economy. Major indices like the Shanghai Composite and Hang Seng experienced declines, with significant drops in semiconductor and energy stocks. President Xi called for safeguarding supply chains amidst the uncertainty.

Friday saw a notable decline in China and Hong Kong stocks as investor sentiment cooled, driven primarily by the looming threat of new U.S. tariffs potentially disrupting the global economy.

The Shanghai Composite index closed at 3,351.31, marking a 0.67% fall, while the CSI300 index dropped by 0.44%. Real estate and healthcare stocks also witnessed declines, while semiconductor and energy sectors led the downturn with substantial losses of 2.4% and 1.5%, respectively.

In Hong Kong, the Hang Seng index fell by 0.65%, impacted largely by losses of 1.5% in tech giants. The new 25% tariff on auto imports announced by U.S. President Trump, alongside plans for more reciprocal tariffs, has kept investors cautious. Meanwhile, Chinese President Xi Jinping encouraged global CEOs to safeguard supply chains amid these tariff uncertainties.

(With inputs from agencies.)