FX.co ★ Hong Kong Shares Kick Off Week Lower

In early Monday trading, Hong Kong's stock market experienced a downturn, falling by 203 points, or 0.8%, to 26,334. This decline followed a lackluster close in the preceding session. The sentiment was pressured by weaknesses in U.S. futures, despite record highs reached by the Dow Jones and S&P 500 on Friday, as investors continued to weigh the implications of the Federal Reserve's rate cut. In Hong Kong, the current account surplus for the second quarter of 2025 decreased, marking its smallest margin since the fourth quarter of 2023. All industry sectors experienced declines, with significant setbacks seen in property, technology, and consumer stocks. However, the extent of these losses was somewhat limited by the People's Bank of China's decision to maintain key lending rates at historic lows for September, aligning with market expectations. Meanwhile, President Trump announced a favorable discussion with Xi Jinping concerning the TikTok deal, although confirmation from Beijing was pending. Among individual companies, Kuaishou Technology saw a 3.4% drop following an investigation into its e-commerce division. Other notable declines included SITC International at -4.5%, Citic at -3.9%, Orient Overseas at -3.7%, and Meituan at -3.0%. Conversely, Shandong Hi-Speed experienced an impressive 11% surge after repurchasing 3.7 million of its shares.