FX.co ★ Hong Kong Shares Reverse After Early Gains

The Hang Seng Index slipped 0.4%, or 99 points, to 23,518 on Tuesday, erasing earlier gains as property stocks dragged the market lower and investors turned cautious ahead of key US and Chinese economic events. Sentiment deteriorated after the World Bank forecast that China's economic growth will slow to 4.4% in 2026 and 4.3% in 2027, pointing to a prolonged property downturn and weak consumer demand. Markets were also bracing for the US Federal Reserve's latest policy decision and the release of China's June CPI and PPI figures later this week for guidance on the policy outlook. Property developers led the declines after their sector index fell more than 3%, while technology shares also retreated. At the same time, Beijing and Hong Kong unveiled new initiatives to expand trading in currencies, bonds, and gold, in a bid to reinforce the city's status as a leading offshore yuan hub. Major decliners included Kuaishou (-9.5%), Kingboard Laminates (-8.9%), Pop Mart (-4.8%), SMIC (-3.2%), and AIA (-2.2%).