Tech Resilience: China and Hong Kong Stocks Stand Firm Amid U.S.-China Trade Tensions

China and Hong Kong stocks remained stable, supported by tech firms, despite new U.S.-China trade tensions. China retaliated against U.S. tariffs with its own, affecting agriculture and other sectors. Analysts suggest China's growing technological and economic strength is maintaining market confidence, while military and financial resilience further bolster Chinese assets.

China and Hong Kong stocks saw little change on Tuesday, largely buoyed by tech firms, as investors largely dismissed fresh U.S.-China trade tensions in favor of focusing on anticipated policy directions from upcoming parliamentary sessions in Beijing.

In response to new U.S. tariffs, China swiftly retaliated, implementing 10%-15% hikes on tariffs covering a range of American agricultural products, and restricting 25 U.S. companies. Despite this, China's blue-chip CSI300 Index saw a minor drop of 0.1%, while the Shanghai Composite Index edged up 0.2%. Hong Kong's Hang Seng index declined by 0.3%.

According to analysts and investment managers, China's stock market remains resilient amid higher tariffs, owing to its technological prowess and economic strength, with tech shares gaining nearly 2% and other sectors like defense and gold seeing rises. As China continues to rely less on trade with the U.S., expectations align for strong governmental policies amidst the ongoing trade challenges.

(With inputs from agencies.)