FX.co ★ Hong Kong Market Slips Following Recent Gains

Hong Kong's stock market experienced a decline of 105 points, equivalent to 0.4%, to settle at 23,717 during Thursday's morning session. This downturn interrupted the gains seen in the previous two sessions, as the market mirrored Wall Street's overnight dip. The decline was primarily attributed to rising apprehensions that a new U.S. budget bill could exacerbate the existing deficit. Investors pulled back from the nearly two-month highs reached the preceding day, with widespread losses across all sectors—particularly in property, consumer goods, and technology—affecting market sentiment. Nonetheless, some positive factors helped keep further declines in check, including a report from UBS, which highlighted a significant rebound in Hong Kong’s IPO market projected for 2025. So far this year, proceeds have reached $9 billion, marking a 320% year-over-year increase. Additionally, Morgan Stanley revised its outlook on Chinese stocks upward, pointing to structural improvements, as well as progress regarding tariffs and earnings. Among notable decliners were Nongfu Spring, which dropped 4.3%, Kuaishou Technology, down 2.5%, and Trip.com, down 1.5%. Conversely, electric vehicle manufacturer Xpeng enjoyed a 13% surge following better-than-anticipated Q1 earnings, driven by robust demand for its more affordable product offerings.