{"id":20345,"date":"2025-04-09T02:52:34","date_gmt":"2025-04-09T02:52:34","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=20345"},"modified":"2025-04-09T02:52:34","modified_gmt":"2025-04-09T02:52:34","slug":"hk50-struggles-as-104-u-s-tariff-hits-chinese-goods","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/en-asia\/analysis\/hk50-struggles-as-104-u-s-tariff-hits-chinese-goods\/","title":{"rendered":"HK50 Struggles as 104% U.S. Tariff Hits Chinese Goods"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"559\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image_fx-52-1024x559.png\" alt=\"\" class=\"wp-image-20347\" \/><\/figure>\n\n\n\n<p><strong>Key Points<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>HK50 opens at 19,821 and closes at 19,841<\/strong>, clawing back slightly after dipping to an intraday low of <strong>19,047<\/strong>.<\/li>\n\n\n\n<li>U.S. 104% tariff on Chinese imports triggers a <strong>3.1% drop in the Hang Seng Index<\/strong>; <strong>Shanghai Composite down 1.1%<\/strong>, <strong>CSI300 falls 1.2%<\/strong> at the open.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p><strong>Asian markets were under renewed pressure on Wednesday<\/strong>, as traders responded sharply to the <strong>formal activation of 104% U.S. tariffs on Chinese goods<\/strong>, which came into effect at <strong>04:01 GMT<\/strong>. The move, part of a sweeping protectionist plan by the Trump administration, sent ripples through regional indices despite ongoing efforts by Beijing to stabilise its financial system.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">The escalating trade war between the US and China saw Trump raise tariffs even further on small parcels that were until now exempt from taxes <a href=\"https:\/\/t.co\/gLIWMrBOnh\">https:\/\/t.co\/gLIWMrBOnh<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1909784812539232467?ref_src=twsrc%5Etfw\">April 9, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>In a bid to counteract the market panic, <strong><a href=\"https:\/\/www.reuters.com\/markets\/asia\/china-state-firms-vow-boost-share-purchases-stabilize-plunging-market-2025-04-08\/\">Chinese state-owned enterprises ramped up share purchases<\/a><\/strong>, while a wave of listed companies announced <strong><a href=\"https:\/\/finance.yahoo.com\/news\/chinas-state-asset-regulator-support-083708626.html\">share buybacks<\/a><\/strong> to shore up sentiment. Despite these interventions, the broader <strong>Hang Seng Index fell 3.1%<\/strong>, matching the region-wide gloom. On the mainland, the <strong>Shanghai Composite Index slipped 1.1%<\/strong>, and the <strong>CSI300 fell 1.2%<\/strong>, reflecting widespread caution across all Chinese equities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Technical Analysis<\/h2>\n\n\n\n<p>The <strong>HK50 (Hang Seng Index futures)<\/strong> opened at <strong>19,821<\/strong>, sliding sharply to <strong>19,047<\/strong> before staging a partial recovery to close marginally higher at <strong>19,841<\/strong>. The recovery, however, lacked conviction. Price action on the <strong>15-minute chart<\/strong> remained well below key moving averages (5, 10, 30), and the <strong>MACD (12,26,9)<\/strong>, while edging into bullish territory, failed to produce strong upward momentum. Traders are watching closely to see if a break above <strong>19,900\u201320,000<\/strong> can be sustained, or if the bounce will prove short-lived.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/en-asia\/wp-content\/uploads\/sites\/27\/2026\/03\/image-10-1024x439.jpg\" alt=\"\" class=\"wp-image-20346\" \/><\/figure>\n\n\n\n<p><em>Picture: Bearish pressure cools with a MACD crossover showing early signs of shift, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app<\/a><\/em><\/p>\n\n\n\n<p>Traders are increasingly wary that Beijing\u2019s response to Washington\u2019s tariffs\u2014while supportive on the surface\u2014may fall short of reversing market psychology without a major breakthrough in negotiations. With <strong><a href=\"https:\/\/finance.yahoo.com\/news\/live\/trump-tariffs-live-updates-trump-plans-rose-garden-event-as-aides-reportedly-push-for-20-tariffs-191201022.html\">Trump\u2019s administration simultaneously seeking talks with non-Chinese trade partners<\/a><\/strong>, the focus is shifting to how aligned Washington\u2019s allies will be\u2014and how isolated China could become.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\">Cautious Outlook<\/h3>\n\n\n\n<p>While short-term technical indicators hint at a brief reprieve, the fundamental landscape remains clouded. The <strong>HK50 is still trending below its late March levels<\/strong>, and sentiment continues to be weighed down by geopolitical risk, export uncertainty, and weaker global growth forecasts.<\/p>\n\n\n\n<p>Unless a diplomatic thaw emerges between the U.S. and China, traders should brace for more <strong>volatile sessions and potential retests of support near the 19,000 mark<\/strong>. For now, state support may provide a floor, but it does little to inspire upside conviction.<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a><\/strong><strong> and <\/strong><strong><a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a><\/strong><strong> now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Hang Seng Index slips further after the U.S. imposes 104% tariffs on Chinese imports. Support from state-backed funds and corporate buybacks fails to lift broader sentiment. &#8211; vtmarkets.com<\/p>\n","protected":false},"author":64,"featured_media":20347,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[31],"tags":[11],"class_list":["post-20345","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-indices"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/64"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=20345"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/20345\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/20347"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=20345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=20345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=20345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}