On April 9, 2025, Eastern Time, Trump suddenly announced that he would increase the tariffs on Chinese goods from the original 104% to 125%, and at the same time announced that he would suspend the imposition of tariffs on more than 75 countries and regions seeking negotiations. As soon as this news came out, the global capital market was shocked, but A-shares became the focus before the market and staged a wonderful counter-attack against the trend in subsequent trading days.
Despite facing external tariff pressure, the A-share market still shows strong resilience. As of today's closing, the ChiNext Index (399006) led the rise throughout the day, the Shanghai Composite Index (000001) returned to 3200 points, and the Beijing Stock Exchange 50 (899050) index rose nearly 5%. The daily turnover of Shanghai and Shenzhen stock markets was 1.61 trillion yuan. On the market, individual stocks generally rose, with more than 4,900 stocks in the entire market rising, and more than 200 stocks hit the daily limit and may rise by more than 10%. From the perspective of sectors, large consumer stocks have exploded collectively, and many other stocks such as infants, duty-free, and e-commerce have risen sharply. Consumer electronic concept stocks have rebounded, and unified large market concept stocks have continued to be active. As of the close, the Shanghai Composite Index rose 1.16%, the Shenzhen Component Index rose 2.25%, and the ChiNext Index rose 2.27%.
In this tariff storm, China quickly fought back. On April 2, less than 48 hours after Trump announced the "reciprocal tariff", China announced an additional 34% tariff on all imported goods originating from the United States, launched an investigation on some American companies and entities, included some companies on the export control list, suspended the import of some goods into China, and implemented export controls on seven categories of medium and heavy rare earth-related items.
Behind the counter-trend rise of A-shares is the collective actions of various funds and the strong support of relevant departments. Starting from April 7, the main players of the "national team" Central Huijin, China Chengtong, China Guoxin and Social Security Fund all expressed their intention to increase their holdings in ETFs, and insurance funds, public funds, and listed companies have all taken out large amounts of real money and silver to repurchase them. The State-owned Assets Supervision and Administration Commission of the State Council publicly stated that it fully supports central-owned enterprises to continuously increase their holdings and repurchase efforts.
Experts said that A-shares counterattack against the trend under the pressure of US tariffs on China to 125%, demonstrating the potential and vitality of China's capital market, and also showing that in the complex international economic environment, China has the ability and confidence to maintain the stability of the economy and capital market.
