The Hang Seng Index declined about 1.0%, or 223 points, to around 23,960 on Tuesday as Hong Kong equities resumed trading after Monday’s public holiday, with technology services and retail stocks leading the losses. Technology names remained under pressure amid concerns about the financing of AI infrastructure, elevated borrowing costs, and uncertainty over whether substantial capital spending will generate adequate returns. Major decliners included Lenovo (-5.8%), Tencent (-2.0%), Innovent Biologics (-4.4%), MiniMax (-1.4%), and Semiconductor Manufacturing International Corporation (-1.5%).
China’s decision to leave its benchmark lending rates unchanged at 3.00% and 3.50% provided no additional monetary easing, though stronger-than-expected third-quarter GDP growth eased the immediate urgency for further stimulus. By sector, retail trade fell 2.01% and producer manufacturing dropped 1.38%, while modest gains in energy minerals (+0.16%) and electronic technology (+0.34%) offered only limited support to the broader market.
