Hong Kong Shares Under Pressure, Weekly Performance Muted

The Hang Seng plunged 465 points, or 1.7%, to finish at 26,567 on Friday, marking a second straight session of losses as all sectors retreated. A notable drop in U.S. stock futures pressured investor sentiment following a tech-led slump on Wall Street Thursday, before the CPI data release later today. Meanwhile, mainland markets closed sharply lower, ahead of the nine-day Lunar New Year holiday starting February 15. China’s bourses will be shut next week, while Hong Kong will be closed from Tuesday. Meantime, signs of easing Sino-U.S. tensions limited further weakness after Washington shelved key tech security measures ahead of an April Trump-Xi Jinping meeting. Bank of East Asia sank 11.1% on lower 2025 earnings. Gold-linked names also fell with bullion, including Zijin Gold Intl. (-5.0%), Laopu Gold (-4.0%), and Chow Tai Fook (-3.9%). In contrast, Healthy Way Inc. surged 14% on profit prospects. For the week, Hong Kong markets were almost flat, stabilizing after the prior sharp fall.

Hong Kong stocks tumbled 446 points, or 1.7%, to 26,588 in early Friday trade, extending losses for a second session following an overnight Wall Street’s sharp retreat on AI disruption fears. Meanwhile, fresh data showed China’s new home prices slid 3.3% yoy in January, the steepest drop in seven months, underscoring Beijing’s struggle to stabilize property markets and further pressuring sentiment. All sectors weakened, with financials, consumer names, and tech leading declines. Still, losses were partly cushioned by reports that Washington has delayed key tech security measures against Beijing ahead of an April summit between U.S. President Trump and his Chinese counterpart, Xi Jinping. Major laggards included Tencent Music (-9.2%), Wuxi Biologics (-4.2%), Meituan (-3.1%), AIA Group (-3.0%), and Trip.com (-1.9%). For the week, the Hong Kong market was little changed. Trading will pause Tuesday through Thursday for the Lunar New Year holiday.

The Hang Seng fell 234 points, or 0.9%, to close at 27,032 on Thursday, halting gains from the prior three sessions as tech, consumer, and financial shares weighed. Sentiment weakened ahead of China’s extended Lunar New Year break from February 15, while Premier Li Qiang’s call for greater tech innovation and AI adoption failed to lift markets. Caution also grew ahead of January home price data in China after December’s print hit the steepest drop in five months. Still, losses were capped by a rebound in U.S. futures, supported by steady labor trends and optimism that inflation data may reinforce the Fed’s near-term pause on rates. Back in China, the PBoC pledged to cut banks’ liability costs, keep financing cheap, and guard against systemic risks, while reiterating support to spur domestic demand. Lenovo dropped 4.6% on weaker profits, while NetEase slid 4.1% after a Q4 miss. Alibaba Hong Kong eased 0.9% despite efforts to reposition its flagship AI product as a consumer-facing agent.