Hong Kong Stocks Retreat

The Hang Seng Index fell 0.9%, or 238 points, to close at 25,413 on Monday, retreating from a two-week high in the previous session, weighed down by declines in the financials, technology, and energy minerals sectors. Investors also turned cautious following stronger-than-expected US jobs data, which boosted expectations for a Federal Reserve rate hike this month. Meanwhile, China’s August trade balance is due later this week, with the trade surplus expected to rise to $120.1 billion from $101.1 billion a year earlier and $112.5 billion in July, offering fresh clues about external demand and the strength of the broader Chinese economy, with the reading potentially influencing market sentiment. Among stocks, Xiaomi shares fell 3.2%, despite after raising prices on some smartphone models and continuing its Class B share repurchases. Tencent Holdings (-0.8%), MiniMax (-3.3%), and Meituan (-1.8%) declined, while Kingboard Laminates (7.8%), and Kingboard Holdings (4.1%) gained.

The Hang Seng Index rose 1.7%, or 438 points, to close at 25,651 on Friday, rebounding from the previous session’s losses and reaching its highest level since August 21, supported by a global tech rally and reduced expectations of a September Fed rate hike. Global technology stocks gained overnight after Fed Governor Christopher Waller signalled a preference to keep rates steady if inflation continues to cool. Chinese AI firm Moonshot AI also reportedly confidentially filed for a Hong Kong IPO that could raise around US$3 billion, further lifting sentiment toward the tech sector. Tencent Holdings climbed about 2.5% after an HKEX filing showed it bought back 229,000 shares for HK$100.3 million on September 3, while reports suggested that its heavy AI spending is unlikely to result in perpetual cash burn, easing concerns over the long-term impact of its AI investments. Tech gainers included MiniMax (1.5%), Meituan (5.2%), and SenseTime (5.9%). The benchmark gained 0.3% week-to-date.

The Hang Seng Index fell 0.4%, or 98 points, to close at 25,213 on Thursday, reversing earlier gains as investors took profits and sentiment weakened toward the close. The benchmark had risen as much as 0.7% in early trading, supported by strength in technology and financial stocks, but the gains failed to hold. Technology stocks remained in focus as mainland Chinese investors continued to shift funds into Hong Kong-listed AI and technology names, including Alibaba, Tencent and MiniMax. Meanwhile, Shein Global Holdings dropped 8.7% on its third day of trading in Hong Kong, extending its weak post-listing performance. Investors also remained cautious ahead of key US employment data due Friday, which could provide further clues on the Federal Reserve’s interest-rate outlook. Lower oil prices and softer bond yields provided some support to regional markets, but concerns surrounding global growth and geopolitical risks continued to weigh on sentiment.