Hang Seng ends muted after China pledges support without new stimulus

The Hang Seng finished flat at around 21,981 on Monday, as traders carefully digested a key press briefing in China following Friday's Politburo meeting. In the briefing, Chinese officials promised to offer support to exporters and workers who have been affected by U.S. tariffs, while also outlining contingency plans to safeguard the broader Chinese economy.

Hang Seng ends muted after China pledges support without new stimulus

These statements come amid ongoing concerns over the impact of global trade tensions on China’s economic stability. However, the session remained relatively muted, with modest losses in early trade. Strength in financials and technology stocks managed to offset weakness in the property and consumer sectors, reflecting mixed investor sentiment. The market's cautious tone was reinforced by Beijing's decision to refrain from rolling out fresh stimulus measures at this time, signaling that additional actions would be implemented gradually as the economic situation develops. Despite the positive rhetoric from China, U.S. futures fell modestly following remarks by Treasury Secretary Janet Yellen on Sunday. Yellen failed to back President Trump’s claims that tariff talks with China were actively underway, which tempered hopes for a swift resolution to trade tensions. Meanwhile, Beijing has taken some steps to ease the impact of the ongoing tariff war by granting certain exclusions on U.S. imports that were previously subject to 125% counter-tariffs. This move aims to reduce the burden on domestic industries that rely on U.S. products, though the broader trade environment remains uncertain.

Notable laggards included Akeso

In terms of individual stock performance, notable laggards included Akeso Inc., which saw a sharp drop of 11.8%, and BYD Electronic, which fell 8.6%. These declines were partly driven by market concerns over global demand and supply chain disruptions. On the other hand, shares in Pop Mart International surged by 12.1%, as the company's strong growth prospects in the collectibles market continued to attract investor attention. Similarly, China State Construction saw a 6.0% jump, buoyed by the robust demand for infrastructure projects, while SITC International’s stock gained 4.0%, reflecting optimism in the logistics and shipping sector despite the global trade tensions. The mixed session reflects the ongoing uncertainty surrounding both domestic policy responses and global trade negotiations, with investors remaining on edge about how further developments, particularly in the U.S.-China trade relationship, will impact economic growth in China and beyond.