Hong Kong Stocks See Biggest Weekly Drop Since 2008 Amid Trade War Fears

Hong Kong stocks experienced a significant downturn on April 11, recording their largest weekly decline since the 2008 financial crisis. This drop was largely fueled by escalating trade tensions between the U.S. and China. The Hang Seng Index fell by 0.8%, approaching a three-month low, and showed a substantial weekly loss of 9.7%. In mainland China, the Shanghai Composite Index saw a smaller decrease of 0.1%, supported by state firm purchases aimed at stabilizing the market. While there was a brief rally following a pause in tariff implementations, traders are now evaluating the impact of existing tariffs, including those imposing 145% duties on Chinese goods. Beijing has been actively intervening to stabilize markets through state fund stock purchases and encouraging share buybacks. Despite the market volatility, some investors, such as Liam Zhou from Minority Asset Management, express optimism regarding China's economic resilience, pointing to factors like reduced dependence on the U.S., controlled property risks, technological advancements, and upgrades in manufacturing capabilities.