FX.co ★ Hong Kong Stocks Dip for 5th Session

On Wednesday morning, Hong Kong equities declined by 105 points, or 0.4%, landing at 25,019. This marks the fifth consecutive session decline, influenced by a tech-induced selloff on Wall Street preceding the release of the Federal Reserve's July meeting minutes and the upcoming Jackson Hole conference. Market sentiment remained fragile following Tuesday's report that China's youth unemployment surged to a near year-high of 17.8% in July, driven by weak demand across tech, real estate, and education sectors. However, losses were mitigated by the People's Bank of China's decision to maintain key lending rates at historic lows, meeting expectations as Beijing aims to enhance liquidity and address disinflation. Conversely, mainland Chinese stocks maintained their positive momentum, bolstered by appealing valuations, easing trade tensions with the United States, and a shift towards domestic consumption themes. Most sectors in Hong Kong ended lower, primarily led by technology and consumer sectors. Hansoh Pharma experienced a significant drop of over 6% due to a discounted share sale, while China Longyuan Power decreased by 4.7%, Kunlun Energy by 4.2%, MGM China by 2.9%, and Xiaomi Corp. by 1.0%.