HONG KONG: China stocks were flat on Tuesday, while Hong Kong shares pulled back, as initial euphoria over a US-China trade agreement to delay and slash tariffs gave way to growing caution over the lengthy negotiations ahead.

President Donald Trump has significantly reduced the tariff on small parcels sent to the United States from mainland China and Hong Kong, after the impasse was broken in the two countries’ trade war following talks on the weekend.

The U.S. and China announced today that they were temporarily reducing the triple-digit tariffs that had shaken the global economy. For the next 90 days, imports from China are set to face a minimum fee of 30 percent,