FX.co ★ Hong Kong Shares Edge Lower After China Data

Hong Kong's stock market experienced a setback on Tuesday, slipping 41 points, or 0.2%, to settle at 24,244 by midday. This decline interrupted a three-day positive trend. The downturn was spurred by China's Q2 GDP figures, revealing a 5.2% year-on-year growth—a three-quarter low, yet marginally above the anticipated 5.1%. China's statistics bureau highlighted persistent external challenges and signaled that domestic demand remains subdued. Additionally, investors were on edge awaiting the U.S. inflation data slated for later that day, which is expected to influence the Federal Reserve's future monetary policy decisions. In terms of international trade, President Trump announced potential 100% secondary tariffs on Russia should a peace agreement with Ukraine fail to materialize within 50 days. Mitigating further losses, June's higher-than-expected new yuan loans indicate a seasonal uptick in loan activity and robust government bond sales. The real estate sector saw declines as well, with notable drops from Longfor Group (-3.6%), China Resources Land (-2.9%), and China Overseas Land (-1.9%).