FX.co ★ Hang Seng Turns Early Gains to Finish Lower

The Hang Seng Index declined by 187 points, or 0.8%, concluding the trading day at 23,453 on Thursday. This downturn countered earlier gains and marked a retreat from the robust rally seen in the prior session. Declines were broad-based, impacting all sectors, particularly technology, property, and consumer stocks. Investor sentiment waned as mainland Chinese markets also turned negative after a three-day period of bullish trading. Additional caution was sparked by Wednesday's report of a sharp drop in China's new bank loans for April, which plummeted to a 20-year low, signaling weak demand and ongoing stress from U.S.-China trade frictions. The announcement that Beijing had lifted a rare earth export ban, amidst easing trade tensions, did little to boost confidence. Market participants remained cautious ahead of Alibaba's upcoming earnings report. Hang Seng Bank saw a decline of 1.1% amid a business restructuring affecting 1% of its core workforce. Key decliners included KE Holdings, which fell by 5.0%, Meituan declining by 3.0%, and SMIC down by 3.2%. On a positive note, Geely Auto rose by 2.1% following a significant increase in its quarterly profit report.