China, HK stocks rise on hopes of state support as Trump ups tariffs

SHANGHAI, April 10 (Reuters) - China and Hong Kong shares rose at the open on Thursday, supported by expectations of policies and buying by state firms as U.S. President Donald Trump raised tariffs on Chinese imports further.

China's blue-chip CSI300 Index .CSI300 opened up 1.7%, while the Shanghai Composite Index .SSEC gained 1.3%. Hong Kong benchmark Hang Seng .HSI was up 2.7%.

Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries while further escalating tariffs on China to 125%, intensifying the trade conflict between the world's two largest economies.

China on Wednesday raised additional duties on American products to 84% and imposed restrictions on 18 U.S. companies, mostly in defence-related industries.

Mainland and Hong Kong stocks have held up relatively well this week through a global stock rout on expectations Beijing will do more to shield the economy from tariffs.
China has said it will take resolute and effective measures to safeguard its rights and interests in response. It also released a White Paper that said Beijing was willing to communicate with Washington to resolve differences between the world's two biggest economies.

Also, China's biggest brokerages have pledged to help steady domestic share prices, the Shanghai bourse said, while scores of listed companies said they planned to buy stocks.

Chinese state holding companies, led by Central Huijin, continued to support the stock market by increasing share investment.

Mainland investors bought Hong Kong shares worth a net HK$35.5 billion ($4.46 billion) via the Stock Connect scheme on Wednesday, the highest on record.