Chinese stocks experienced their worst start to a year since 2016, with the CSI 300 Index dropping 2.9% on the first trading day of 2025. This decline was triggered by weaker-than-expected manufacturing data, as the Caixin Manufacturing PMI fell to 50.5, below the forecasted 51.7. The Hang Seng China Enterprises Index also fell, closing down 3.1%. The downturn in the stock market was exacerbated by concerns over potential U.S. tariffs under the incoming administration of Donald Trump. Additionally, China's 10-year government bond yield reached a record low of 1.6%, reflecting expectations of further monetary support from the People's Bank of China. The economic uncertainty and anticipation of policy changes have led investors to adopt a cautious approach at the beginning of the year.