FX.co ★ Hang Seng Retreats From Early Gains But Books Weekly Rise

The Hang Seng Index decreased by 79 points, or 0.3%, closing at 26,845 on Friday. This marked the second consecutive session of losses as the overall market weakness overshadowed initial gains. Investors remained cautious ahead of critical data from China expected next week, which includes figures for Q4 GDP, December industrial output, retail sales, and the loan prime rate setting. The decline could also be attributed to profit-taking activities following a recent climb to decade highs driven by optimism in artificial intelligence. Additionally, a new regulatory measure from Beijing, which tightens margin financing rules effective January 19, contributed to the downturn. However, on a brighter note, Hong Kong stocks rose by 2.3% for the week, rebounding from earlier declines, buoyed by the People’s Bank of China's indication of potential reductions in banks' reserve requirements and policy rates. Furthermore, December saw new yuan loans surpass expectations due to stronger demand at year-end. In individual stock movements, Chow Tai Fook saw a 1.5% decline despite its global expansion efforts, while Haidilao dropped 1.3% following a change in its CEO. Other notable decliners included Pop Mart, which fell by 5.7%, Tencent Music, down by 4.7%, and Xiaomi Corp., which decreased by 1.9%.