Equities in Hong Kong Under Slump to Begin New Month

The Hang Seng Index fell 265 points, or 1.0%, to close at 25,386 on Thursday, reversing earlier gains as investor sentiment weakened and profit-taking emerged across the broader market, with losses in financial and technology services stocks weighing on the benchmark. The cautious tone came amid softer regional risk appetite following recent market advances. In Hong Kong, Sany Heavy Equipment International dropped 9.3%, marking its lowest level since January 16. Other major laggards included Tencent Holdings (-3.5%), Semiconductor Manufacturing International Corporation (-2.0%), and Meituan Class (-0.6%). Despite the broader decline, electronic technology shares outperformed, rising 9.9%, with Sunny Optical Technology gaining around 9.2%. Meanwhile, investors also awaited inflation data due today for signals on interest rates and global monetary policy direction.

The Hang Seng Index rose 127 points, or 0.5%, to 25,780 on Thursday, recovering losses from the previous session as benchmark tracked gains after Wall Street advanced, with investors encouraged by easing geopolitical concerns following progress in US-Iran negotiations, which helped improve risk sentiment and supported a pullback in oil prices. On the domestic front, sentiment was also lifted by strength in global equities, as optimism over artificial intelligence demand continued to underpin technology shares, even as volatility in NVIDIA weighed on parts of the chip sector after a lukewarm reaction to its sales forecast. Electronic technology shares surged about 12.2%, led by Semiconductor Manufacturing International Corporation, which gained around 4.5%. Other notable movers included Tencent Holdings (0.1%), AIA Group (1.3%), Meituan (2.8%), Lenovo Group (1.4%), and XPeng Inc. (4.1%).

The Hang Seng Index fell about 0.6% to close at 25,651 on Wednesday, retreating from the previous session’s gains as investors locked in profits in technology and growth stocks amid weaker sentiment across Asia. Caution grew following overnight softness on Wall Street, particularly among chipmakers and AI-related shares, which weighed on Hong Kong-listed tech giants. Traders also monitored rising US Treasury yields and uncertainty over the timing of Federal Reserve rate cuts, dampening appetite for risk assets. Meanwhile, lingering geopolitical tensions and volatile oil prices added to investor caution, offsetting optimism over Hong Kong’s improving IPO pipeline and stronger-than-expected recovery signals from mainland China. Notable decliners were Hesai Group (-9%), MiniMax (-7.5%), Laopu Gold (-6.9%), RoboSense (-6%), Zijin Gold (-4.3%), Shenzhen (-4%), and Kuaishou (-2.5%). On the upside, electronic technology stocks surged 12.6%, led by Cisco (+29.3%), and Giga Device (+17%).