China’s Markets Reopen Amidst Tariff Uncertainty and AI Earnings Watch
Shanghai, Feb 21, 2026, 13:58 CST — Chinese A-share markets reopened today, February 24th, following the Spring Festival break, returning investors to a global landscape shaped by ongoing U.S. Tariff developments and the impending release of key AI sector earnings reports.
Market Performance Before the Break
The Shanghai Composite last closed on February 13th, down 1.26% at 4,082.07 points. The Shenzhen Component Index also experienced a decline, falling 1.28% to 14,100.19, according to Xinhua reports Xinhua News. The CSI 300 index, a benchmark for large Shanghai and Shenzhen listings, finished the session down 1.25% at 4,660.41 Investing.com.
U.S. Tariff Developments
Recent developments in U.S. Trade policy have introduced a degree of uncertainty. The Supreme Court struck down President Donald Trump’s sweeping tariffs imposed under emergency powers, but Trump indicated his intention to pursue a temporary 10% tariff under a different statute Reuters. Eric Merlis, co-head of global markets at Citizens, noted that the decision did not clarify eligibility for tariff refunds, leaving a key source of uncertainty intact Reuters.
AI Sector Earnings and Market Expectations
The technology sector, particularly AI, is under scrutiny. Nvidia’s upcoming earnings report next week is considered a crucial indicator of whether the surge in AI spending is translating into tangible returns Reuters. Marta Norton, chief investment strategist at Empower, highlighted the high expectations surrounding Nvidia, stating, “It’s hard for Nvidia to surprise when everyone expects it to surprise” Reuters.
Domestic Stimulus Measures
China is implementing measures to stimulate domestic consumption. A nationwide campaign is underway to distribute over 360 million yuan ($51.6 million) in consumption vouchers and subsidies focused on cultural and tourism spending Xinhua News.
Liquidity and Cross-Border Trading
The Spring Festival break has temporarily reduced liquidity in markets across China, Hong Kong, and Singapore, leading traders to rely more on offshore pricing in currencies and commodities Reuters. Upon reopening, traders will closely monitor turnover, sector leadership, and cross-border activity through the Shanghai-Hong Kong Stock Connect link Com.
Spring Festival Tourism Surge
China’s Spring Festival is experiencing an unprecedented influx of international tourists, with arrivals soaring 312 percent in the holiday’s opening days, driven by visa-free entry and tax refund incentives Bastille Post. Popular destinations include Shanghai, Beijing, Guangzhou, Chengdu, and Shenzhen Bastille Post.
Despite tariff concerns and market volatility, Chinese factories remain busy preparing for the Lunar Modern Year, with many operating at near full capacity CNBC Africa. Renaud Anjoran, founder and CEO of Agilian Technology, noted that his factory, which ships over half its products to the U.S., is operating as if tariffs don’t exist CNBC Africa.