The losses suggest sentiment remains fragile even after Chinese equities posted their first annual advance last year since 2020. There’s a lack of confidence over the country’s economic recovery, with the Caixin manufacturing survey coming in below estimates and Donald Trump’s threat of higher tariffs looming large ahead of his inauguration later this month.
Chinese stocks posted their worst start to a year in nearly a decade as investors braced for economic uncertainties with weaker-than-expected manufacturing data and an anticipated hike in tariffs.
The CSI 300 Index closed down 2.9% on Thursday, its steepest drop on a year’s first day of trading since 2016. The Hang Seng China Enterprises Index slid as much as 3.1%.
