Hong Kong Stocks Extend Decline

The Hang Seng Index fell 333 points, or 1.3%, to 24,990 on Thursday, pressured by weakness in financial, technology services, and retail trade stocks, as investors turned cautious amid mixed signals surrounding prospects for a US-Iran agreement to end the conflict. Reports suggesting uncertainty over the progress of negotiations weighed on regional sentiment, while higher crude oil prices further dampened risk appetite following gains in energy markets. Notable laggards included Tencent Holdings (-1.2%), Xiaomi Corporation (-1.3%), Meituan (-3.2%), and AIA Group (-3.7%). Still, losses were partially cushioned by strength in electronic technology shares surging 0.3%, with Semiconductor Manufacturing International Corporation and Pop Mart International rising nearly 4.2% and 6.5%, respectively. Investors also looked ahead to the release of Hong Kong’s latest trade data later in the day.

The Hang Seng Index fell 1.1% to end at 25,328 on Wednesday, marking the lowest closing level since early April amid weakness in energy, technology services, and property stocks. This came despite a broader artificial intelligence rally as well as hopes that the Middle East conflict could be moving toward a resolution, with the US signaling progress toward a potential peace agreement despite fresh hostilities. Notable losses were seen from Tencent Holdings (-1.1%), CNOOC (-2.2%), Xiaomi (-4.6%), Meituan (-1.4%), and Sun Hung Kai Properties (-2.2%). Partly offsetting the decline were gains in Lenovo Group (4.5%) and Semiconductor Manufacturing International (1.0%). On the data front, China's industrial profits surged 24.7%, the biggest gain since November 2023, after a 15.8% growth in March, despite domestic headwinds and heightened global uncertainty.

The Hang Seng Index traded almost flat, closing around 25,600 on Tuesday after giving up earlier gains, as renewed concerns over Middle East supply risks were triggered by US military strikes in southern Iran. Sentiment remained cautious amid ongoing US-Iran peace negotiations, which investors continued to monitor for signs of de-escalation. However, Chinese equities listed in Hong Kong advanced after the holiday, with investors largely shrugging off Beijing’s latest crackdown on illicit cross-border stock trading and instead rotating into technology shares. Finance and technology services declined while electronic technology shares surged around 12.8%. Among notable laggards were Tencent Holdings (-0.5%), Meituan Class (-3.1%), Xiaomi Corporation (-0.8%). In contrast, Semiconductor Manufacturing International Corporation rose 5.95%, while Lenovo Group and Dongyue Group jumped 15.3% and 15.6%, respectively.