On April 7, 2025, Hong Kong’s Hang Seng Index closed down 13.2%, marking its most significant single-day decline since the 1997 Asian financial crisis. This sharp drop was largely driven by escalating trade tensions between the U.S. and China, following China’s retaliatory tariffs in response to U.S. levies imposed under President Donald Trump. The sell-off saw widespread losses across sectors like technology, banking, and retail, with major companies such as Alibaba plummeting 18%. Meanwhile, China’s state-backed “national team” stepped in to stabilize mainland markets, but the global ripple effects fueled recession fears, dragging down other Asian markets as well. It’s a brutal day for investors, reflecting deep uncertainty about trade wars and economic growth.
