Trade War Turmoil: Uncertainties and Market Reactions Amid Sino-U.S. Tensions

China stocks and Hong Kong shares experienced fluctuations as the U.S. indicated possible tariff easing, while ruling out unilateral measures. The volatile market situation reflects ongoing uncertainty in the Sino-U.S. trade war. With tech shares leading declines, the market remains unpredictable as tariff negotiations hang in balance.

China's stock market showed signs of volatility on Thursday, with the Hong Kong shares notably declining, as investors grappled with mixed signals from Washington regarding the tariff tensions with China.

The blue-chip CSI300 and Shanghai Composite indices fluctuated between gains and losses, ultimately closing almost unchanged. Meanwhile, Hong Kong's Hang Seng Index fell by nearly 1%, primarily driven by declines in tech stocks.

U.S. Treasury Secretary Scott Bessent's remarks that the Trump administration could consider lowering tariffs, albeit not unilaterally, added to the market's uncertainty. The ongoing trade standoff sees no immediate negotiation, further impacting tech shares, while China's banking sector showed resilience amid a $72 billion recapitalization plan.

(With inputs from agencies.)