Hold Seng Index Information: Stimulus Hopes vs. Tariff Fears as 26,000 Stays Elusive…

Hold Seng Index and Mainland Markets Diverge

The Hold Seng Index declined zero.33% to 25,440 in morning buying and selling on July 30, exposing the essential 25,000 assist degree. Nonetheless, Mainland China markets superior on recent stimulus from Beijing. The CSI 300 and the Shanghai Composite Index climbed zero.37% and zero.39%, respectively.

On July 28, Beijing introduced plans to difficulty an annual childcare subsidy of three,600 Yuan per little one underneath three years of age, beginning January 1, 2025. Commonplace Chartered Financial institution reportedly commented on the recent stimulus, stating:

“The latest measures are responses to the decline in fertility charges and ageing, with the central finance being the primary supply of funds. It cannot solely enhance folks’s well-being but additionally enhance consumption. Though the annual subsidy of three,600 yuan will not be a lot for giant cities, it’s a appreciable subsidy for residents in rural areas and small and medium-sized cities.”

In a single day, US fairness markets posted losses because the Fed’s rate of interest choice and Fed Chair Powell’s press convention loomed. The Dow fell zero.46%, whereas the Nasdaq Composite Index and S&P 500 snapped 4 and six-day successful streaks, dropping zero.38% and zero.30%, respectively.

EV and Tech Shares Slide as US Tariffs Keep

Tech heavyweights Alibaba (9988) and Baidu (9888) fell 1.74% and 1.20%, respectively. Electrical car (EV) shares confronted heavier losses as US-China commerce talks didn’t yield an settlement to decrease tariffs on Chinese language shipments. BYD (1211) slid three.43%, whereas Li Auto (2015) plunged 10.51%.

US Treasury Secretary Scott Bessent reportedly warned of extra tariffs on China to push negotiations ahead. In the meantime, the US additionally threatened a 100% tariff on China if it continues buying oil from Russia.