US President Donald Trump’s announcement to hike tariffs on China to over 50% has dealt a significant blow to Chinese stocks, with many major Asian markets falling sharply. However, some investors are cautiously optimistic that further stimulus measures from Beijing may mitigate the impact of the trade tensions.
The CSI 300 Index closed 0.5% lower after initially dropping by 1.1%, while the Hang Seng Index fell 1.5%. Despite Treasury Secretary Scott Bessent’s warnings against retaliation, China has vowed to impose unspecified countermeasures in response.
Analysts expect some Chinese companies to benefit from potential stimulus measures, as they rely heavily on domestic consumption and have limited exposure to US imports. “I think people have been bracing for tariffs and believe there could be some government intervention from more fiscal stimulus to offset headwinds,” says Kai Wang, a Hong Kong-based senior equity analyst.
However, not all Chinese stocks are insulated from the impact of US tariffs. Shenzhou International, a clothing maker with significant sales in the US, saw its shares plunge by 17.5% on Wednesday. Investors are advised to focus on stocks that benefit from future stimulus from China, as many industries are unaffected by US tariffs.
The Chinese government aims to achieve around 5% economic growth in 2025, with domestic consumption expected to drive growth. Analysts note that some Chinese companies have been diversifying their exposure to the US market and may benefit from potential stimulus measures.
Source: https://www.forbes.com/sites/ywang/2025/04/03/china-stocks-pare-losses-after-trump-tariffs-hopes-for-govt-stimulus