Chinese Markets Rebound After Sharp Sell-off; Semiconductors and Defense Stocks Lead Gains
On April 7, Chinese markets opened sharply lower at 9:26 AM, with the Shanghai Composite Index falling 4.46%, the Shenzhen Component Index down 5.96%, and the ChiNext Index declining 6.77%. Sectors including consumer electronics, photovoltaics, robotics, Xiaomi Automotive, AI applications, computing power, cross-border e-commerce, and lithium batteries experienced significant pullbacks. Conversely, agricultural and biotechnology stocks strengthened against the downward trend. Approximately 5,400 stocks across the market recorded losses, with nearly 800 dropping more than 9%.
The Hang Seng Index extended its losses, declining as much as 10%, with WuXi Biologics falling more than 20% and BYD Electronic sliding nearly 19%.
Losses accelerated during the trading session, with the ChiNext Index dropping by as much as 11%, the Shanghai Composite Index down 7.16%, and the Shenzhen Component Index falling 8.94%. Over 1,000 stocks across all markets reached their daily trading limit (跌停).
Meanwhile, China’s central bank increased its gold reserves for the fifth consecutive month. According to official data, China’s gold reserves stood at 73.70 million ounces at the end of March, up from 73.61 million ounces at the end of February.
However, after trading opened on April 8, the Hang Seng Index rose by 2%, while the Hang Seng Tech Index surged by over 4%. The Shanghai Composite Index increased by 0.54%, and the Shenzhen Component Index edged up by 0.11%. Sectors such as semiconductors, defense, and medical devices led the gains, with more than 2,700 stocks rising across the Shanghai, Shenzhen, and Beijing markets.
China-U.S. Trade Conflict Intensifies as Beijing Imposes 34% Tariff; Trump Threatens 50% Retaliation
China announced on April 4 that it will impose a 34% tariff on all imports from the United States starting next week, marking Beijing’s strongest response yet to President Donald Trump’s escalating trade measures. The new tariffs, effective Thursday, match the rate imposed by Trump earlier this week on Chinese goods entering the U.S.
Despite this latest escalation, Trump indicated on April 5 that he remains open to negotiations with China regarding the forced sale of social media app TikTok. He has extended the deadline for the app to divest from its Chinese parent company by an additional 75 days under a recent federal mandate, following Beijing’s suspension of the deal amid rising tensions.
U.S. markets fell sharply on Friday in reaction to China’s retaliatory actions, which include tighter export controls on rare-earth minerals—vital components for a wide range of advanced technologies. On April 5, China’s Ministry of Commerce (MOFCOM) further escalated the dispute by filing a lawsuit against the U.S. at the World Trade Organization (WTO). According to a MOFCOM statement, the U.S. imposition of so-called “reciprocal tariffs” violates WTO regulations, infringes on the legitimate rights of WTO members, and undermines global trade stability. MOFCOM described these tariffs as “typical unilateral bullying,” expressing strong opposition.
In another significant move, MOFCOM announced Friday that it has placed 11 American companies—including drone manufacturer Skydio—on its “unreliable entity list.” Additionally, it imposed export controls on 16 other U.S. firms, including High Point Aerotechnologies, Universal Logistics Holdings, and Source Intelligence, prohibiting the export of dual-use items to these entities and immediately halting any related ongoing activities.
On April 7, U.S. President Donald Trump stated via social media that China had ignored his warnings and responded with retaliatory tariffs. Trump announced that unless China withdraws its newly imposed 34% tariffs on U.S. imports and halts what he described as “long-standing trade violations” by April 8, the United States would impose additional tariffs of 50% on Chinese goods starting from April 9.
China’s Urban Housing Rental Market Undergoes Structural Shift Towards Quality and Long-Term Stability
On March 31, the 2025 China Urban Long-Term Rental Market Development Blue Book (the “Blue Book”) was officially released. The report was jointly produced by Tsinghua University’s Real Estate Research Center, Ziroom Research Institute, and Xinhua Net’s Cultural Industry Research Institute, with support from China Construction News.
According to the Blue Book, China’s urban housing market is experiencing a historic transformation—from rapid expansion driven by new housing supply to a strategic focus on optimizing existing properties. This transition is driven by two primary factors. First, a significant segment of China’s approximately 260 million renters includes former homebuyers re-entering the rental market, with an increasing emphasis on living quality. Second, the conventional rental market, primarily managed by individual property owners, requires substantial reforms to meet evolving consumer demands.
The report further highlights that rental populations in China’s four major first-tier cities have grown to nearly 40 million, representing approximately 50% of their total residents. In 40 key cities nationwide, renters aged over 35 now constitute more than 35% of the rental market, up 4.9 percentage points since 2021, marking the fastest growth among all demographic segments.
Additionally, more than half of surveyed tenants expressed openness to renting for periods exceeding five years, with nearly 20% considering ten years or longer. Among tenants seeking long-term rental stability, almost half prefer engaging professional leasing companies, citing superior maintenance quality and customer service as their main motivations.
Xiaomi Issues Detailed Response Following First Fatal Accident Involving SU7 EV
The Xiaomi SU7 electric vehicle, widely praised for its advanced safety features since its market debut in March 2024, experienced its first publicly reported fatal accident, resulting in the tragic deaths of three female university students.
The incident occurred around 10:44 PM on March 29, 2025, on the Dezhou–Shangrao Highway in Anhui Province, China. Early reports circulated on Chinese social media, alleging that the vehicle caught fire after a collision and claiming the passengers could not escape due to door malfunction.
Amid escalating public concern, Xiaomi issued a detailed statement on April 1, providing an extensive accident timeline based on vehicle data submitted to police investigators:
- 10:27:17 PM: NOA (Navigation on Autopilot) activated, vehicle speed 116 km/h.
- 10:28:17 PM: Mild distraction warning issued.
- 10:36:48 PM: NOA issued a hands-off alert: “Please hold the steering wheel.”
- 10:44:24 PM: NOA detected obstacle ahead, issued risk alert and requested deceleration.
- 10:44:25 PM: Driver resumed manual control, steering wheel turned 22.0625° left, brake pedal pressed 31%.
- 10:44:26 PM: Steering wheel adjusted slightly right (1.0625°), brake pedal pressure increased to 38%.
- 10:44:26–10:44:28 PM: Vehicle collided with concrete barrier.
- 10:44:28 PM: Vehicle eCall system automatically triggered.
- 10:44:39 PM: eCall connected; police and emergency services notified.
- 10:45:06 PM: Vehicle owner contacted; confirmed vehicle operated by a different driver.
- 10:47:15 PM: Emergency medical services dispatched successfully.
- Approximately 11:00 PM: Emergency responders arrived at the scene.
According to Xiaomi, the SU7 standard-version vehicle was traveling at 116 km/h with NOA mode activated when approaching a construction zone that required vehicles to switch lanes. The system detected the obstacle, issued warnings, and began to decelerate. The driver then took manual control but ultimately collided with the barrier at an estimated speed of 97 km/h. Regarding the door-related allegations, Xiaomi clarified that each door is equipped with mechanical emergency release handles, operable even if battery systems fail.
Following the release of Xiaomi’s official statement, shares of Xiaomi Group (01810.HK) briefly declined by more than 5%.
On the evening of April 1, Xiaomi CEO Lei Jun publicly expressed his deepest condolences to the victims and their families. He stated that the accident remains under active investigation, and pledged Xiaomi’s full cooperation with authorities.
Additionally, the company explicitly refuted claims that the vehicle had been returned to Beijing. Xiaomi refrained from commenting extensively on the cause of the post-crash fire, citing the ongoing official inquiry.
U.S. YouTube Star IShowSpeed Sparks Global Interest with Live-Streamed China Tour
Amid the recent “China Travel” craze, more international social media influencers are visiting China. Among them is American YouTube sensation Darren “IShowSpeed,” whose ongoing journey has drawn widespread global attention with unscripted, authentic live streams showcasing a dynamic, diverse, hospitable, and prosperous China. The 20-year-old streamer arrived in China on March 31, rapidly becoming a global trending topic, according to media reports.
IShowSpeed’s tour kicked off in Shanghai, China’s bustling financial hub, where he streamed live for over six hours, showcasing the city’s iconic skyline and vibrant urban lifestyle. Continuing to Beijing on Wednesday, he visited historic landmarks like the Great Wall and the Forbidden City, expressing enthusiasm for China’s rich cultural heritage. Dressed in a suit featuring distinctive prints from Northeast China, he notably praised China’s high-speed bullet trains for their seamless 5G internet connectivity, even while streaming live from railway tunnels.
Despite language barriers and a packed itinerary, IShowSpeed engaged global viewers through uninterrupted live streams as he explored China’s streets, savored local cuisine, and interacted warmly with enthusiastic fans and diverse locals. In Central China’s Henan Province, he fulfilled his martial arts aspirations by visiting the legendary Shaolin Temple.
In Chengdu, capital of Sichuan Province, IShowSpeed immersed himself in distinctive local culture—enjoying Sichuan Opera performances, sampling authentic hotpot, experiencing traditional acupuncture treatments, and observing tea-house rituals.
His journey also took him to Chongqing, a megacity renowned for its futuristic urban landscape. There, he showcased the city’s iconic light rail system passing through buildings, admired its distinctive mountainous architecture, and captured vibrant nightlife scenes.
IShowSpeed’s tour highlights the rapid resurgence of inbound tourism in China following the introduction of visa-free policies, attracting increasing numbers of foreign tourists and business visitors. His China visit is notably unique in his broadcasting career—not just for the extensive volume of live-streamed content delivered, but also for maintaining consistently smooth, engaging broadcasts free from disruptions.