China and Hong Kong shares rose on Thursday, as investors downplayed the latest US tariff increase on Chinese imports and pinned their hopes on talks between the world’s two largest economies and market and policy support from state firms.
China’s blue-chip CSI300 Index and the Shanghai Composite Index both rose 1.4% as of 0235 GMT. Hong Kong’s benchmark Hang Seng was up 3.5%.
The rise in Hong Kong shares also followed a 6% surge in Chinese internet companies listed on the US market overnight after US President Donald Trump temporarily cut the steep tariffs he had just imposed on dozens of other countries.
Trump at the same time escalated tariffs on China to 125% from the 104% level that just took effect on Wednesday. “Investors believe the marginal effect of raising tariffs further from the existing level will shrink, as most Chinese exports to the US have already been greatly…
