Uncertain Start: China and Hong Kong Stocks Slip Amid Tepid Factory Data

China and Hong Kong stocks saw a decline in their opening 2025 trading session, affected by underwhelming Chinese factory activity data and awaiting further policy support. Analysts highlighted the crucial role of upcoming policies and domestic demand in shaping market recovery, amidst concerns over export tariffs.

China and Hong Kong stocks began 2025 on a downcast note, as the latest factory activity data fell short of expectations, signaling a rocky economic outlook. Chinese indices, including the CSI 300 and Shanghai Composite, saw noticeable declines, while Hong Kong's Hang Seng also trended downward.

The disappointing factory numbers reflected slower growth in December, with export orders faltering amid apprehensions surrounding international trade. This underlines the importance of robust policy interventions, as demonstrated by marginal stock gains last year after a historic slump.

Market analysts suggest that clarity may arrive post the National People's Congress in March, where economic targets and stimulus efforts are set to be unveiled. However, immediate market movements remain unpredictable, influenced by the domestic and global economic climate and policy responses.

(With inputs from agencies.)