Stocks in Hong Kong Hit 8-week Low

The Hang Seng Index rose to 0.2%, or 47 points, to close at 24,713 on Wednesday, led by tech shares, but gains were capped as investors held back from large bets ahead of the U.S. Federal Reserve's policy decision later in the day. Sentiment was pressured by elevated US Treasury yields, with the 10-year yield having briefly breached 5% in the previous session, while a stronger US dollar also weighed on Asian risk assets. Technology stocks provided support, with the Hang Seng Tech Index rising 0.9% by midday. Zhipu AI surged more than 8%, ending an 11-session losing streak, while MiniMax, SMIC and Hua Hong Semiconductor gained more than 5% to 7%, meanwhile Xiaomi (-1.5%), Kuaishou (-1.7%) and Akeso (-3.9%) declined. In the region, reports highlighted a potential US$2.6 billion financing for Hong Kong data-center development, reflecting growing investment in the city's AI and digital-infrastructure sector.

HK50 decreased to 24570.00 Index Points, the lowest since July 2026. Over the past 4 weeks, Hong Kong Stock Market Index (HK50) lost 3.42%, and in the last 12 months, it decreased 8.65%.

The Hang Seng Index slipped 1.0%, or 250 points, to close at 24,667 on Tuesday, as a rebound in AI and semiconductor shares failed to offset broader losses, while mixed August economic data reinforced concerns over weak domestic demand. Investors remained cautious ahead of key global central-bank decisions and amid elevated oil prices, which have renewed concerns over inflation and the interest-rate outlook. Additionally, the US 10-year Treasury yield briefly climbed to 5%, its highest level since October 2023, ahead of the Federal Reserve's policy decision this week. Meanwhile, investors awaited China's August economic data, including new-home prices, industrial production and retail sales due later in the day. Notable laggards included Z.AI Co. (-5.7%), MiniMax (-7.1%), SMIC (-0.9%), Xiaomi (-2.4%), and Lenovo (-2.9%) while Tencent (1.9%) annd Kingboard Laminates (3.1%) rose.