Chinese stock markets experienced notable volatility on May 12 and 13, 2025, amid easing tariff impacts and mixed investor sentiment. On May 12, the Hang Seng Index in Hong Kong surged by nearly 3% at close, with the Hang Seng Tech Index rising over 5%, marking its largest gain in two months. The Shanghai Composite Index and Shenzhen Component Index also posted moderate gains of around 0.5% and 0.98%, respectively, while the ChiNext Index increased by approximately 1.3%. Several Chinese technology and electric vehicle stocks saw significant premarket gains in the U.S., including Alibaba (up 6.8%), PDD Holdings (up 7%), Baidu (up 4.5%), JD.com (up 6.1%), Li Auto (up 7.1%), Nio (up 6.1%), and XPeng (up 8.2%). ETFs tracking Chinese equities also advanced, with the iShares MSCI China ETF up 3.7%, iShares China Large Cap ETF up 3.2%, and KraneShares CSI China Internet ETF up 5%. The FTSE China A50 Index futures opened about 7% higher. Despite these gains, southbound net selling via the Stock Connect reached 18 billion yuan, the highest since late October, indicating some selling pressure from mainland investors. Turnover on the Shanghai and Shenzhen exchanges exceeded 1 trillion yuan for the 13th consecutive trading day. However, on May 13, the Hang Seng Index and Hang Seng Tech Index declined by over 2%, with the Shenzhen Component Index turning negative. UBS projected China's GDP growth for 2025 to be between 3.7% and 4.0%, noting that the impact of the 45% U.S. tariff on Chinese goods has eased. Conversely, BNP Paribas forecasted a 0.6 percentage point reduction in China's GDP growth due to the tariff. The mixed market performance reflects cautious investor sentiment amid ongoing trade negotiations and economic outlook revisions.