Hong Kong Market Dips as China PMI Release Nears

2026-02-26 03:01 By Farida Husna 1 min. read

Hong Kong shares fell 168 points, or 0.6%, to 26,602 in Thursday morning trade, reversing the prior day’s gains as mainland stocks retreated and traders cautiously awaited February PMI data, due next week.

U.S.

futures also slipped following Wall Street’s strength overnight, with sentiment dampened by IMF warnings that the U.S.

current account deficit remains excessive, echoing concerns from the Trump administration.

Still, losses were limited after the city’s 2026/27 budget projected an earlier-than-expected operating surplus following three years of deficits.

Meanwhile, inflation in Hong Kong eased to 1.1% in January, pointing to a four-month low and slightly below forecasts.

The tech index drove the decline, with Nvidia’s strong results failing to lift sentiment.

Meanwhile, consumer stocks weakened on worries about a post-holiday slowdown after Lunar New Year spending.

Early laggards included KE Holdings (-4.9%), Galaxy Ent.

(-3.7%), Trip.com (-2.8%), and Kuaishou Tech (-2.7%).



News Stream
Hong Kong Market Dips as China PMI Release Nears
Hong Kong shares fell 168 points, or 0.6%, to 26,602 in Thursday morning trade, reversing the prior day’s gains as mainland stocks retreated and traders cautiously awaited February PMI data, due next week. U.S. futures also slipped following Wall Street’s strength overnight, with sentiment dampened by IMF warnings that the U.S. current account deficit remains excessive, echoing concerns from the Trump administration. Still, losses were limited after the city’s 2026/27 budget projected an earlier-than-expected operating surplus following three years of deficits. Meanwhile, inflation in Hong Kong eased to 1.1% in January, pointing to a four-month low and slightly below forecasts. The tech index drove the decline, with Nvidia’s strong results failing to lift sentiment. Meanwhile, consumer stocks weakened on worries about a post-holiday slowdown after Lunar New Year spending. Early laggards included KE Holdings (-4.9%), Galaxy Ent. (-3.7%), Trip.com (-2.8%), and Kuaishou Tech (-2.7%).
2026-02-26
Hang Seng Ends Higher After Budget Surplus Signal
The Hang Seng Index rose 175 points, or 0.7%, to close at 26,766 on Wednesday, rebounding from the prior session’s weakness. Sentiment improved after the city’s 2026/27 budget projected an earlier-than-expected operating surplus following three years of deficits. Financial Secretary Paul Chan Mo also unveiled measures to bolster Hong Kong’s global financial role and support innovation and tech development. Meanwhile, Q4 GDP growth in the city was confirmed at 3.8%, the fastest in two years, lifting full-year growth to 3.5% from 2.6% in 2024. Further gains in mainland stocks added to the momentum, as the Trump administration pushed plans for a global metals trading zone, boosting rare earth and metal shares. Financials led the advance, and consumer stocks edged higher, though property and tech weakness capped gains. Haidilao surged 6% on strong holiday sales, while KE Holdings (5.7%), Orient Overseas (1.9%), China Hongqiao Group (1.6%), and Meituan (1.5%) also posted notable rises.
2026-02-25
Hong Kong Shares Regain Ground Ahead of Budget
Equities in Hong Kong rose 97 points or 0.4% to 26,690 in early deals on Wednesday, reversing from a sharp drop in the prior session after Wall Street closed notably higher overnight ahead of President Trump's State of the Union Speech. Locally, the city's 2026/27 budget will be introduced in the Legislative Council later today. In China, stocks extended gains on views that a U.S. tariff reset could benefit Beijing. On the policy front, the PBoC kept loan prime rates at record lows for a ninth straight month. However, gains were capped by caution, ahead of key data in the city, including Q4 final figures, January inflation, and trade readings. Meantime, fresh tensions between Beijing and Tokyo emerged after China barred sales of dual-use items to 20 Japanese firms with alleged military ties. Most sectors in the city rose, led by property, consumers, and tech. Anta Sports jumped 4.5%, alongside China Resources Land (4.0%), China Overseas Land 93.0%), and Zijin Gold Intl. (2.0%).
2026-02-25