FX.co ★ Hang Seng Dips 1% at Finish

On Wednesday, the Hang Seng Index declined by 256 points, or 1.1%, concluding the day at 23,892, reversing its gains from the previous session. This downturn was largely due to disappointing economic data emanating from China. June saw consumer prices on the mainland increase for the first time in five months, yet concerns about deflation remained prevalent. Concurrently, producer prices experienced their steepest drop in two years as subdued demand and uncertainties related to tariffs aggravated competitive pricing pressures. The losses were widespread, significantly impacting technology, real estate, and consumer sectors. Henderson Land experienced a substantial 8.6% decline following the release of a HKD-denominated convertible bond. Other significant decliners included Sun Hung Kai Properties, which fell 3.1%, Meituan, down by 2.5%, and Xiaomi Corp., which saw a 2.0% decrease. However, further declines were curtailed by U.S. President Trump's comments affirming positive progress in trade negotiations with both the EU and China, alleviating fears of Beijing being targeted in the forthcoming series of tariff hikes. Meanwhile, according to the South China Morning Post, the second half of the year is expected to witness a surge in IPO activity in Hong Kong, with projections indicating between 100 and 139 new listings.