Hang Seng Index News: Tech Stocks Slide on Tariff News; Li Auto Soars on Earnings

Tariff Shock: Court Ruling Roils Hang Seng, Traders Eye 23,000 Break

A surprise ruling from the US Court of Appeals overnight revived fears of renewed US-China trade tensions, fueling demand for safe-haven assets. The Hang Seng Index tumbled in early trading on Friday, May 30, wiping out the prior session’s gains after the court reinstated President Trump’s Liberation Day tariffs. Tech and EV stocks led the sell-off, dragging the index sharply lower.

Market focus now turns to incoming Chinese PMI data, the possibility of renewed US-China trade talks, or stimulus pledges from Beijing. These factors may determine whether the index breaks below 23,000 or rebounds toward the 24,000 handle.

Hong Kong Stocks Slide as Tariff Risks Resurface

While US equity markets advanced on May 29— with the Nasdaq Composite Index up 0.39%— the appellate court’s decision impacted risk sentiment. In response, Dow mini and Nasdaq 100 futures fell 44 and 65 points, respectively. Hong Kong markets also reacted to the trade headlines, with the Hang Seng Index sliding 1.55% to 23,209. Mainland indices also declined, with the CSI 300 and the Shanghai Composite Index falling 0.67% and 0.54%, respectively.

Tech Stocks Fall Sharply; EV Sector Mixed

The all-important Hang Seng Tech Index tumbled 2.59% as investors reacted to overnight trade developments. Tech giants Alibaba (9988) and Baidu (9888) dropped 3.30% and 3.56%, respectively. The US government’s suspension of chip software exports to China intensified selling pressure in the sector.

Meanwhile, EV stocks posted mixed performances at the session’s start. BYD (1211) and Geely Automobile Holdings (175) fell 3.20 and 2.82%, while Li Auto (2015) surged 7.3% after reporting upbeat Q1 2025 earnings and a positive outlook. The carmaker also unveiled plans for new model launches.

Liberation Day Tariffs Reinstated

On May 29, the US Court of Appeals overturned the prior day’s Court of International Trade ruling, reinstating Trump’s Liberation Day tariffs. Although the administration has rolled back most tariffs since April 2, the reinstatement reignited fears about the 90-day truce in the US-China trade war. A lack of meaningful progress toward a trade agreement raises the specter of renewed 145% tariffs on Chinese goods and a 120% tariff on US exports to China.

US Treasury Secretary Scott Bessent spoke overnight about US-China trade developments, suggesting trade talks have stalled. According to CN Wire:

“US Treasury Secretary Scott Bessent said trade talks with China are “a bit stalled” and suggested a call between President Donald Trump and Chinese President Xi Jinping may be necessary to reach a deal. In an interview Thursday, Bessent noted the importance of direct leader engagement given the magnitude and complexity of the negotiations… and he expects more talks with Chinese officials ‘in the next few weeks’.”

Key Levels to Watch: 23,000 Support or 24,000 Breakout

Despite early losses, the Hang Seng Index remained within its recent trading range. A sustained break below 23,000 could signal a decline toward the 50-day Exponential Moving Average (EMA) and possibly bring the key 22,000 psychological level into sight.

Conversely, upbeat Chinese economic data over the weekend or encouraging trade news could lift sentiment. Improving sentiment may drive the index toward 24,000. A break above 24,000 would target the March high of 24,847. Any fresh stimulus from Beijing could add momentum.

Hang Seng Technical Outlook

• Resistance: 24,000, then 24,874.
• Support: 23,000, 50-day EMA at 22,744, then 22,000.
• Bias: Neutral-to-Bullish in the short-term, depending on data, trade signals, and stimulus policy.

Forecast Summary

The Hang Seng remains range-bound amid heightened volatility. Trade concerns and the absence of stimulus commitments from Beijing are capping gains. However, upbeat PMI data on May 31 or policy announcements could revive demand. Until then, caution may dominate investor sentiment.

For real-time updates on US-China trade talks, global stimulus efforts, and central bank signals, follow our live coverage and consult our economic calendar.