May 8, 2025, 11:52 GMT+7
(Reuters) - China and Hong Kong stocks flirted with one-month highs on Thursday, recovering ground lost since U.S. President Donald Trump's "Liberation Day" tariffs last month, as Beijing's rate cuts and stimulus measures helped calm trade concerns.
** China's blue-chip CSI300 Indexclimbed 0.8% by the lunch break, while the Shanghai Composite Indexgained 0.4%. In Hong Kong, the benchmark Hang Seng Indexrose 1.1%.
** China cut its policy rate by 10 basis points on Thursday, part of a package of measures aimed at buttressing an economy bruised by the crushing Sino-U.S trade war. Other policies announced on Wednesday include reducing the amount of cash that banks must hold as reserves, and efforts to stabilize financial and property markets.
** "Not only are these helpful in smoothing market volatility and shoring up investor confidence at stressed times, but they are also showcasing the authorities' commitment to stabilize investors' price and wealth-effect expectations," Goldman Sachs wrote in a note.
** The Wall Street bank nudged its 12-month index target for CSI300 to 4,400 points, 14% higher than the current level.
** Goldman expects "the effective U.S. tariff rate on Chinese imports to fall to around 60% from about 160% relatively soon."
** U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer will meet with China's economic tzar He Lifeng on Saturday in Switzerland, moving toward a potential negotiations over trade disputes.
** "Market uncertainty is abating, and risk appetite is growing," Dongxing Securities wrote. But the brokerage warned of volatility ahead as the trade war's economic impact on China will likely deepen.
** Chinese banking shares rose after regulators said on Wednesday that sovereign fund Huijin will continue to help stabilize the market. Banks are favoured by state-backed "National Team" investors, which have bought at least 110 billion yuan ($15.21 billion) worth of China-listed shares over the past month, according to an estimate from Goldman Sachs.
** Defence-related stocksremained bullish amid rising geopolitical tensions as Pakistan vowed retaliation after Indian strike over tourist deaths.
** Tech shares in China and Hong Kong rose after Beijing pledged support to the strategically important sector.
($1 = 7.2339 Chinese yuan)

Sumber : Reuters