Basically the most well-liked US transfer against China might per chance gasoline speculation about an AI war amid uncertainties surrounding swap tariffs between the two nations.
Market Reaction: Hong Kong Tech Stocks Tumble
Hong Kong-listed tech stocks tumbled in response to Friday’s memorandum, underscoring concerns about the US limiting China’s entry to US tech. On February 24, essential Hong Kong-listed tech stocks tumbled:
- Alibaba (9988) fell 2.02%, followed by a 4.94% plunge on February 25.
- Baidu (9888) declined 3.58% on February 25 after closing the February 24 session flat.
- Tencent (0700) slid 3.22% on February 25.
Brian Tycangco, editor and analyst at Stansberry Be taught, famed the market’s reaction:
“Hong Kong market takes a tumble on the open Monday following Trump’s memorandum on limiting US investments in Chinese language tech, including AI. As well-liked, emotional reaction to disturbed headlines dominate retail sentiment. Veteran hands being shaken on the present time.”
Beijing’s Response and Protection Priorities
Beijing condemned the transfer. The International Ministry reportedly warned:
“US will quit up hurting itself if shut out Chinese language corporations and markets.”
In the period in-between, Beijing reaffirmed its commitment to rising the tech sector. On February 21, China’s CSRC Chairman Wu Qing declared precedence give a scheme shut to for tech corporations focusing on core technology style through equity and debt financing and mergers and acquisitions.
Earlier, on February 19, Beijing furthermore unveiled plans to scheme shut put a query to for key sectors, including autos, electronics, and residential merchandise.
Stock Market Developments: US Tariffs and AI Escalation
The continuing US-China swap and AI rivalry has solid uncertainty over mainland Chinese language and Hong Kong-listed stocks. Concerns are growing that the US might per chance impose tariffs on semiconductor chips as early as April 2.
Irrespective of present AI-pushed rallies, China’s markets earn experienced mixed efficiency.
- CSI 300: -0.02% three hundred and sixty five days-to-date (YTD).
- Shanghai Composite Index: +0.12% YTD.
- Hold Seng Index +14.32% YTD.
The Hold Seng Index continues outperforming its Mainland friends, pushed by AI-linked positive aspects. Irrespective of this week’s sell-off, Alibaba (9988) has soared 56.31% YTD, while Nvidia is down 2.ninety nine%.
