Chinese shares and future bond fulfillment contracts have declined, showing that investors remain anxious for commercial tensions, even after the “signal” given by the president. USADonald Trump last weekend (11-12 October 2025) that he is open in talks with China.
Hang Seng China Enterprises expanded its decline to 3.1% today (13.10.25), with Alibaba Group Holding and Tencent Holdings technology being among the greatest pressures. The CSI 300, a reference index for continental shares, fell up to 2.7%. China’s People’s Bank increased its daily reference rate to the strongest than November, in an attempt to maintain the yuan firm against the pressures exerted on the national Chinese currency Following President Trump’s statements about 100% duty on imports from Beijing (compared to 35% today).
The regression comes after a sharp rise in Chinese shares this year, as investors ignored commercial friction and believed in the country’s technological well -being and Beijing’s ability to support the economy. Trump’s threat at the end of last week to impose 100% additional tariffs on Chinese products, in response to critical export controls from Beijing, was a strong reminder of the fragility of any trading truce.
The fall was milder than the 6.1% drop in the Nasdaq Golden Dragon China index on Friday. Some investors seem to take advantage of the sell-off to buy the fall, expecting the worst after messages from the White House that it is open to an agreement.
“Markets should be prepared for short -term instability from duties, but China’s diversified export base and rapid political reaction mean that the broader impact on economy and markets are limited,” said Dilin Wu, a strategic analyst on Pepperstone Group. “Traders can see this as a short -term shock and not as a structural threat.”
A constant deterioration of the links between the two largest economies could endanger one of the world’s best performance this year, as well as new doubts about China’s investment capacity.
The Hang Seng China rose nearly 30% in 2025 to Friday, as Chinese shares benefited from the capacity of trade with the US, in addition to the optimism of the country’s growing influence on artificial intelligence. Technology shares in particular were rising, with Alibaba’s shares more than doubled this year.
Unlike Monday’s fall, Chinese chip manufacturers bet that Beijing will intensify efforts to reduce US technology imports and further enhance local businesses. Semiconductor Manufacturing International increased by up to 6.1% in the mainland. Rare land shares have also risen as China used minerals as a main trading lever.
In the currency market, offshore yuan rose up to 0.2%, erasing its losses on Friday. The Central Bank of China (PBOC) has set Yuan’s steady exchange rate at $ 7,1007 per dollar today, over Bloomberg survey estimates. China’s future bond contracts rose amid risk avoidance climate, with 30 -year contracts up to 0.7%.
The steady exchange rate “is a powerful message that despite President Trump’s threat of 100% against China, PBOC will not allow Yuan to be depreciated and intends to maintain the stability of the exchange rate,” said Khoon Goh, head of research at Anz. “This should help in the calm of the wider Asian currency markets today.”
On rise to the futures of US brokerage indicators
Futures of US stocks were rising and oil recovered after President Donald Trump’s announcement of a window into a deal with China, improving the climate after a strong escalation of commercial tensions.
Contracts for the S&P 500 increased by 1.3% and these for Nasdaq 100 increased by 1.7%, as the government reduced its rhetoric after Trump’s threat with 100% duties in China in response to Chinese export controls. The 10 -year contract for future deduction of the US State opened higher and oil increased by 1.5%. Silver moved close to a historic record as a historic short squeeze in London and commercial tensions upset the market, while gold scored a new climax. The cryptocurrencies were stabilized.
The reductions in Asian shares, which were closed when Trump made his comments on Friday, suggest concerns about the duration of the truce. The shares in mainland China fell 1.8% and those in Hong Kong fell 3.3%, the largest intra -day decline since early April. Japan is closed for holiday, no cash transactions in public bonds.
Large downward movements in dangerous assets are rare last, which can in itself be a factor in acute reaction to commercial tensions. Since the collapse caused by duties in April, the S&P 500 has been reinforced due to optimism about artificial intelligence and hopes for interest rates by the US Federal Bank. The index has been negotiating near one of his highest valuations for 25 years – leaving a little room for bad news.
“It does not look like a repetition of April, probably with a phase of negotiations before the November deadline for the US-China truce,” said Anna Wu, a strategic analyst at the Van Eck Associates, “markets discount a certain degree of over-term on Friday 10 October”.
Since China revealed a wide spectrum last week worldwide checks on exports of products that even contain traces of certain rare earths, Trump responded threatening to cancel a scheduled face -to -face meeting with Si Jinping – their first.
Trump said he would impose an additional 100% duty on China, as well as export controls on “any critical software” from November 1st.
China responded, saying that the United States should stop threatening it with higher duties and urged further negotiations to resolve pending trade issues, adding that it would not hesitate to react if Washington insisted on Beijing’s measures.
On Sunday, October 12, the Trump government showed open to an agreement with China, with Trump implying a possible de -escalation for Si, while overturned that a complete trade war would hurt China.
This suggests that the US wants to continue pressure on China to reverse its latest commercial moves, while trying to reassure the terrified markets that an escalation of exchanges is not inevitable.
“The markets are now discussing if this last duty uniform will be implemented,” Dillin Wilin, a strategic analyst at Pepperstone Group, wrote in a note. “If it is a negotiating trick, the current retreat can prove to be an opportunity for buy-the-dip. But if duties come into force, a new wave of instability and world risk could be followed. “
Meanwhile, Chinese missions abroad have increased at the fastest pace of the last six months, far beyond forecasts, in a sign of resilience that gives Beijing stronger hand in the last trade war with the US.
Elsewhere, Australia’s dollar has led to the recovery of risk-sensitive coins, as Trump’s most reconciliation rhetoric against China reinforced the investment climate and reduced demand for assassination assets. Typical assassination assets declined on Monday, with both the Yen and the Swiss franc to weaken against the dollar. An index of Asian currency has fallen to the lower level than May.
Markets see “a small retaliation” in the currency’s pricing on Friday, with the hope of a decline between the US and China, said Rodrigo Catril, a strategic analyst at National Australia Bank Ltd. in Sydney.
In European news, French President Emmanuel Macron has announced a new cabinet on Sunday, as he is increasing pressure for him and his re -appointed Prime Minister, Sebastian Lekornou, from preventing France’s growing political crisis and vote on a budget. Futal fulfillment of French counterparts were opened.