Hong Kong Stocks Retreat for Second Session

The Hang Seng Index fell 0.3%, or 81 points, to 24,752 on Thursday, extending losses for a second session as global bond sell-off, firmer US dollar and a rebound in oil prices weighed on sentiment. US Treasury yields surged overnight, with the 10-year yield reaching its highest level since 2007, while the dollar strengthened to a near two-month high. The backdrop could pressure Hong Kong technology and growth stocks, which remain sensitive to higher global borrowing costs. Investors also focused on the Trump-Xi summit in Washington, with US Treasury Secretary Scott Bessent saying the US and China had agreed to extend their trade truce by two months to January 10. Oil prices rebounded amid uncertainty over progress in US-Iran talks, adding to inflation concerns. Notable laggards were Tencent (-0.5%), Z.AI Co. (-1.9%), Kingboard Laminates (-1.5%), Lenovo (-3.7%), and SMIC (-1.8%).

The Hang Seng Index fell 1.0%, or 254 points, to close at 24,834 on Wednesday, reversing a modest gain in the previous session and ending a three-session winning streak. Technology stocks led the decline as investors took profits and remained cautious ahead of the expected meeting between Chinese President Xi Jinping and US President Donald Trump. Investors are watching the talks for signals on trade, semiconductors, artificial intelligence and supply chains, with AI emerging as a key area of strategic competition between the world's two largest economies. Alibaba fell 4.2% after a report that China is probing potential data leaks involving DeepSeek and Moonshot. Meanwhile, Brent crude fell below $100 a barrel, offering some relief from recent inflation concerns. Finance, technology services and retail trade stocks led the decline, with Tencent (-2.4%), Z.AI Co. (-12.4%), Xiaomi (-3.8%), MiniMax (-4.0%), and AIA (-1.2%) among notable laggards.

The Hang Seng Index rose 0.2%, or 45 points, to close at 25,088 on Tuesday, extending their winning streak to a third session as renewed strength in artificial-intelligence and semiconductor stocks, along with lower oil prices, boosted risk appetite. In Hong Kong, technology stocks remained in focus following a positive lead from Wall Street, while investors also monitored developments ahead of the expected meeting between US President Donald Trump and Chinese President Xi Jinping later this week. Hong Kong's IPO market also remained active, with Ligent Technologies scheduled to begin trading on Tuesday at an IPO price of up to HK$32.96 per share. Meanwhile, RoboTechnik, Kinwong Electronic, Red Avenue New Materials and Direct Drive Tech are seeking to raise up to US$1.83 billion combined, underscoring continued activity in the city's equity market. Notable movers included Tencent (5.0%), Lenovo (2.8%), and Innovent Biologics (0.7%) while Z.AI Co. (-6.6%) and MiniMax (-3.4%) declined.