- The Shanghai Composite Index dipped 0.3% on Friday, while the CSI 300 slipped 0.2%.
- The chip sector felt pressure as Hua Hong Semiconductor Limited’s stocks dropped nearly 10% after an earnings miss.
- Hong Kong’s benchmark index ended the session with a climb of 0.4%.
China Stocks Retreat as US Trade Talks Loom, Tech Hit Hard
Chinese stocks declined on Friday as investors adopted a more guarded stance ahead of upcoming trade discussions between the US and China. The Shanghai Composite Index edged 0.3% lower, as a range of stocks sank to a notable extent. Jing-Jin Electric Tech performed the worst, with its share price falling by a staggering 10.34%. Another company to witness its stock drop by around 10% was Guizhou Zhongyida.
Hua Hong Semiconductor signalled a decline in investor confidence when it came to the chip sector, as its share price tumbled 9.33% after the company reported weaker earnings for the last quarter. Namely, Hua Hong Semiconductor’s net profit fell by a notable 89.73% in 2025’s Q1, exerting pressure on market sentiment despite a revenue gain of 18.66%. Major industry players like Semiconductor Manufacturing INTL, Brite Semiconductor, and Shanghai V-Test Semiconductor Tech suffered losses in share price value as well.
China’s CSI 300 Index, which tracks the performance of Shanghai Stock Exchange’s top 300 stocks, dipped near 0.2%.
Hang Seng Index Sees Gains
Meanwhile, Hong Kong’s Hang Seng Index closed 0.4% higher after a volatile session, maintaining its four-week winning streak. The benchmark almost reached its highest valuation in five weeks, and the Henderson Land Development component enjoyed the largest increase by jumping 6.18% to 24.05 HKD. Another property giant, Sun Hung Kai Properties, managed to climb by 5.05%.
Geopolitical Focus Intensifies
All eyes remained on the upcoming trade meeting between China and the US in Switzerland. President Donald Trump recently stated he thought they were “going to have a good weekend with China.” He continued, stating: “I think they have a lot to gain. I do think they have far more to gain than we do, in a sense.” On Friday, Chinese Vice Foreign Minister Hua Chunying asserted that Beijing was fully confident it could handle trade matters with the US.
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