Hong Kong-Listed Chinese Equities Outperform, Defying US Tariffs
Market Highlights:
* Hang Seng China Enterprises Index remains largely unchanged despite initial decline.
* Tech giants Alibaba and Semiconductor Manufacturing International Corporation provide support.
* DeepSeek AI model showcases China's advancements in the industry.
* Investors anticipate stimulus measures at annual legislative meeting in March.
Tech Sector Strength:
* Alibaba shares rise 6.5% in Hong Kong, reaching highest level since November.
* Hang Seng Tech Index rebounds, closing 0.3% higher.
* China's tech valuations remain attractive compared to US counterparts.
US Tariffs Impact:
* Trump imposes 10% tariff on Chinese goods effective Tuesday.
* Chinese Commerce Ministry plans "corresponding countermeasures."
* Offshore yuan slides, approaching record low against the dollar.
* Beijing prepares opening bid to mitigate tariff increases.
Stimulus Potential:
* Decline in manufacturing activity in January highlights economic pressure.
* Authorities may implement cuts in reserve requirement ratio and benchmark rates.
* Beijing's previous stimulus efforts have not fully addressed consumption weakness.