FX.co ★ Hang Seng Under Pressure at Finish

On Thursday, the Hang Seng Index fell by 363 points, equating to a 1.4% decrease, concluding the day at 26,545. This downturn marked a reversal of earlier gains as investor sentiment weakened owing to a steep decline in mainland markets. Contributing to the negative outlook, the People's Bank of China (PBoC) indicated today that there is no immediate need to adjust monetary policy, maintaining the seven-day reverse repo rate steady at 1.4%. This development has led to speculation that Beijing might postpone introducing new economic incentives until the following year. Meanwhile, in the United States, the Federal Reserve reduced its benchmark interest rate, aligning with expectations. Fed Chairman Jerome Powell described this move as a "risk management cut," and forecasted two additional rate decreases within the current year, another anticipated in 2026, one in 2027, and no changes projected for 2028. The market also experienced downward pressure due to profit-taking activities, as Hong Kong markets had previously reached a four-year high in anticipation of Friday's discussion between President Trump and President Xi regarding TikTok's ownership in the US. The decline in the index was widespread, particularly affecting sectors such as property, financial services, and consumer goods. Notably, Dongfang Electric Hong Kong experienced a significant drop of 3.1% following a discounted share offering. Other notable declines included TransThera Sciences with a 12.3% decrease, Geely Auto falling by 4.8%, Shandong Hi-Speed down by 4.3%, and Laopu Gold declining by 3.6%.