Hong Kong Stocks Extend Losses for Second Session

The Hang Seng Index fell 0.5%, or 130 points, to 25,283 on Tuesday, extending losses from the previous session as investor sentiment remained subdued amid concerns over rising oil prices and heightened geopolitical tensions. The decline came amid concerns that higher energy costs could fuel inflation and delay global interest-rate cuts. Technology stocks were among the major drags, with Tencent (-0.5%), Xiaomi (-0.9%) and Meituan (-0.3%) trading lower, while Hong Kong Exchanges and Clearing (-0.4%) also fell. Traders also grew cautious ahead of China’s August trade data due later today. Despite the broader weakness, Hong Kong's IPO market remained active. Semiconductor and memory-chip maker Shenzhen Longsys Electronics began trading on the Hong Kong Stock Exchange on Tuesday, after raising about HK$7.1 billion in its IPO. The listing highlights continued investor interest in China's technology and semiconductor sectors.

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.