From Financial Modeling Prep: 2025-02-05 01:21:12

China’s stock market and currency face pressure post-Lunar New Year break due to U.S. trade tensions and AI sector volatility. Despite modest impact of Trump’s 10% tariffs, Chinese stocks rally in Hong Kong. Market largely prices in tariffs, with CSI 300 and Shanghai Composite slipping 0.2%.

Optimism in China’s AI sector boosts market sentiment, with DeepSeek AI model impressing investors. AI-related equities outperform amid trade concerns. China’s central bank sets yuan midpoint at strongest level since 2024, signaling measured approach to currency policy amid U.S. tariffs.

Mainland stocks take cues from Hong Kong rally, as investors watch Beijing’s policy moves closely. Expectations of further stimulus or regulatory easing to sustain market confidence. Focus shifts to China’s domestic policies and AI innovation for market outlook optimism.



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