Hong Kong Stocks Post Biggest Monthly Loss in 2 Years

The Hang Seng Index slipped 182 points, or 0.7%, to close at 24,312 on Wednesday, extending losses from the previous session as investors remained cautious ahead of the Federal Reserve's policy decision, where interest rates are widely expected to remain unchanged, while weighing hopes for additional policy support from China. Market sentiment remained mixed, with traders closely monitoring the Lujiazui Forum in Shanghai for clues on Beijing's next steps to support the slowing economy, while also positioning for the Fed's first policy meeting under Chairman Kevin Warsh. Concerns over China's uneven recovery and continued investor preference for AI-related stocks elsewhere kept gains in check. Technology shares were among the market's better performers, led by gains in Knowledge Atlas (12.6%), while Kingboard Holdings advanced 3.1%. However, the broader market remained under pressure, with notable declines from Tencent Holdings (-0.5%), Xiaomi (-0.9%), and China Hongqiao (-2.0%).

The Hang Seng Index fell 349 points, or 1.4%, to close at 24,494 on Tuesday, snapping a two-session rally as investors locked in recent gains following the market's strong advance at the start of the week. Sentiment was also subdued ahead of key Chinese economic data releases, including industrial production, retail sales, house prices and the unemployment figures, which could offer fresh insights into the strength of the country's economic recovery. Meanwhile, weakness in finance and technology stocks added pressure to the benchmark, with both sectors pulling back after leading gains in the previous session. Among notable laggards included Tencent Holdings (-2.9%), Semiconductor Manufacturing International Corporation (-3.9%), Kingboard Laminates (-1.8%), Pop Mart International (-1.8%), and China Hongqiao Group (-7.1%). In contrast, Knowledge Atlas and Lenovo rose 1.4% and 4.3%, respectively.

The Hang Seng Index climbed 125 points, or 0.5%, to close at 24,843 on Monday, kicking off the week on a positive note and extending gains from the previous session as investor sentiment improved after the US and Iran reached an interim agreement to reopen the Strait of Hormuz, with a formal signing ceremony expected later this week, easing concerns over disruptions to global energy supplies and reducing geopolitical risks. The deal triggered a sharp decline in oil prices, helping alleviate inflation worries and boosting appetite for risk assets across global markets. Knowledge Atlas Technology, also known as Zhipu AI, jumped 33% after unveiling an open-source model over the weekend, boosting optimism over China’s AI sector. Gains were broad-based, led by finance, technology, and retail trade shares. Notable gainers included included AIA (2.6%), Kingboard Laminates (22.3%), Lenovo (9.3%), and Semiconductor Manufacturing International Corporation (7.0%).