Hong Kong stocks reversed gains on Friday, as investors pulled back ahead of more tariff announcements from the US and concerns about financial pressure facing some companies. Having digested US President Donald Trump’s 25 per cent tariffs on car imports, investors are bracing for a slew of new tariffs on April 2, which are likely to fuel inflation in the US.

The Hang Seng Index fell 0.7%. While the Hang Seng Tech Index fell 1.5%.

In terms of star stocks, NIO fell 7%; SMIC fell 5%; Li Auto fell 4%; XPeng, Baidu, and Meituan fell 2%; Xiaomi fell 1%; while Tencent and Alibaba edged higher; Everg Vehicle rose 14%.

In terms of company news, NIO has expanded its new share offering and announced the pricing at a discount to its closing price in Hong Kong on Thursday. The issue price of these new shares has been set at HK$29.46 per share, a discount of 9.49 percent to its closing price of HK$32.55 in Hong Kong on Thursday. The upsized issue amounts to HK$4.03 billion, according to the announcement.

China's Xiaomi Corp said on Tuesday it had raised $5.5 billion in an upsized share sale as the company pushes forward with its ambitious electric vehicle manufacturing plans. The company sold 800 million shares at HK$53.25 each, it said in a statement to the Hong Kong Stock Exchange.

China's largest chipmaker SMIC reported a net profit of 3.699 billion Yuan for 2024, a 23.3% YoY Decline; SMCI reported a 27.7% YoY increase in revenue for 2024.