Thanks for joining us. Here are the key takeaways from the Chinese foreign ministry briefing and the resumption of markets following the lunar new year holidays:
- The Ministry of Foreign Affairs afternoon briefing was the first since US President Donald Trump imposed 10% tariffs on Chinese imports, triggering retaliation by Beijing. Spokesman Lin Jian largely reiterated past points made about the harm of tariffs and China’s opposition to them
- Markets and other watchers were awaiting the briefing for any escalation in rhetoric. But there was little substantive from the briefing, which started about 35 minutes late and lasted just over half an hour. The answers often came after lengthy pauses and were brief, and in response to many questions, Lin often sidestepped giving a direct response
- Chinese shares gained in early trade but ended lower. The drop came a day after the US imposed 10% tariffs on Chinese goods, which prompted Beijing to announce retaliatory actions, and selling intensified after the US Postal Service said it would suspend the acceptance of inbound parcels from China and Hong Kong
- The USPS action drove down shares in Chinese e-commerce firms like JD.com, though some Chinese firms involved in tungsten production gained as Beijing has announced export controls in response to US tariffs. Lin was asked about China’s response and paused for nearly two minutes before saying the US needs to stop suppressing Chinese companies. He also said that China would take steps to protect firms, without giving details
- The onshore yuan fixing was set stronger than expected, signaling authorities will continue to support the currency. But the yuan’s trading was mixed, falling in the onshore market while it strengthened offshore. Commodities were mixed, with the exception of gold, a traditional haven which rose to a record high