FX.co ★ Hong Kong Shares Set to Finish Week on a Soft Note

On Friday morning, Hong Kong's stock market witnessed a decline, with the Hang Seng Index dropping by 82 points or 0.3% to settle at 25,855. This dip erased the previous day's gains, influenced by losses across various sectors. Investor sentiment turned cautious in anticipation of critical economic data from China due next week—specifically, the Consumer Price Index (CPI), Producer Price Index (PPI), and trade statistics. Markets are also on alert for any policy signals from the forthcoming Central Economic Work Conference. Concerns intensified over China's shadow banking sector, following reports that some provinces are increasingly reliant on expensive credit from non-bank lenders. The Hang Seng Index is poised to conclude the week with a slight decrease, off by approximately 0.1%, despite last week's upward trend. However, limiting further declines was a rise in U.S. futures after a subdued session on Wall Street, as investors gear up for the Federal Reserve's interest rate decision next week. Among the early significant decliners were Shenzhou International, falling by 4.1%, Trip.com by 2.2%, Galaxy Entertainment by 2.1%, and Haidilao International by 1.0%.