FX.co ★ Hang Seng Under Pressure at Finish

The Hang Seng Index experienced a significant decline on Monday, dropping 319 points or 1.4%, to conclude the day at 23,282. This fall reversed the gains from the previous trading session as stocks within the consumer, technology, and financial sectors all took a hit. The downturn was triggered by U.S. President Donald Trump's comments threatening a 25% tariff on iPhones not manufactured in the United States, with an additional warning that Samsung and similar brands might face equivalent sanctions. iPhone parts supplier Luxshare saw its shares dip by 0.2% in response. Meanwhile, BYD faced a sharp decline, tumbling 9% after unveiling aggressive discount campaigns in a recent promotion, which also negatively impacted other electric vehicle manufacturers: Geely Auto plummeted by 8.6%, Li Auto fell by 4.0%, NIO decreased by 3.5%, and Xpeng saw a 4.4% drop. Ahead of the release of China's industrial profits data for April, market caution increased. Nonetheless, some losses were mitigated by a surge in U.S. futures, as President Trump postponed the commencement of his proposed 50% tariffs on EU goods, extending the deadline to July 9 from the initial date of June 1. Additionally, robust IPO activity in Hong Kong provided some buffer against the decline. Financial Secretary Paul Chan highlighted that fundraising had reached HKD 76 billion thus far in 2025—an impressive sevenfold increase compared to the previous year and nearly 90% of the total amount raised in 2024.