Chinese stocks struggle amid trade tensions: Mobitech soars in debut
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Chinese stocks closed flat on Monday as renewed trade tensions with the U.S. weighed on investor sentiment, overshadowing earlier optimism driven by a manufacturing sector rebound. The Shanghai Composite Index edged slightly lower to 3,316.93, while the Shenzhen Component Index managed a 0.4% gain, closing at 10,649.59.
Market sentiment deteriorated after reports indicated that Beijing is considering retaliatory tariffs on U.S. agricultural exports. This move comes in response to President Donald Trump’s plan to impose an additional 10% tariff on Chinese goods, raising concerns over further escalation in trade conflicts. The uncertainty surrounding trade policy dampened enthusiasm despite encouraging economic data from the manufacturing sector.
Official data from the National Bureau of Statistics revealed that China’s manufacturing Purchasing Managers’ Index (PMI) returned to expansionary territory, rising to 50.2 in February from 49.1 in January. A similar trend was reflected in the private Caixin PMI, which increased to 50.8 from the previous 50.1 reading. The data signaled a tentative recovery in industrial activity, but broader macroeconomic concerns limited investor confidence.
In corporate developments, Shanghai Mobitech Technology made a strong market debut, closing 149% higher at 70.59 yuan per share, tripling its initial public offering price of 28.33 yuan. The surge reflected strong investor appetite for newly listed technology firms despite broader market uncertainties.
Meanwhile, Aishida shares declined 3.3% as the company announced plans to continue renting properties in the Shanghai Gutai Riverside Building. ZTE experienced a sharper drop, with its Shenzhen-listed shares falling 6.5% after reporting a 9.7% decline in attributable profit, which fell to 8.42 billion yuan in 2024 from 9.33 billion yuan a year earlier.
With trade relations in focus and macroeconomic indicators showing mixed signals, Chinese markets remain highly sensitive to policy developments and external economic pressures. Investors will closely monitor Beijing’s next steps on trade policy and further economic data releases for signs of sustained recovery.
Market sentiment deteriorated after reports indicated that Beijing is considering retaliatory tariffs on U.S. agricultural exports. This move comes in response to President Donald Trump’s plan to impose an additional 10% tariff on Chinese goods, raising concerns over further escalation in trade conflicts. The uncertainty surrounding trade policy dampened enthusiasm despite encouraging economic data from the manufacturing sector.
Official data from the National Bureau of Statistics revealed that China’s manufacturing Purchasing Managers’ Index (PMI) returned to expansionary territory, rising to 50.2 in February from 49.1 in January. A similar trend was reflected in the private Caixin PMI, which increased to 50.8 from the previous 50.1 reading. The data signaled a tentative recovery in industrial activity, but broader macroeconomic concerns limited investor confidence.
In corporate developments, Shanghai Mobitech Technology made a strong market debut, closing 149% higher at 70.59 yuan per share, tripling its initial public offering price of 28.33 yuan. The surge reflected strong investor appetite for newly listed technology firms despite broader market uncertainties.
Meanwhile, Aishida shares declined 3.3% as the company announced plans to continue renting properties in the Shanghai Gutai Riverside Building. ZTE experienced a sharper drop, with its Shenzhen-listed shares falling 6.5% after reporting a 9.7% decline in attributable profit, which fell to 8.42 billion yuan in 2024 from 9.33 billion yuan a year earlier.
With trade relations in focus and macroeconomic indicators showing mixed signals, Chinese markets remain highly sensitive to policy developments and external economic pressures. Investors will closely monitor Beijing’s next steps on trade policy and further economic data releases for signs of sustained recovery.