FX.co ★ Hang Seng Ends Slightly Lower

On Thursday, the Hang Seng Index experienced a minor decline, slipping 22 points, or 0.1%, to close at 25,888. This downturn was primarily due to declines in technology, consumer, and property stocks. The market's surge from Wednesday was short-lived as investors remained cautious ahead of China's fourth plenum, scheduled from October 20-23, during which the 2026–2030 five-year plan will be revealed. Investors are also keen on upcoming significant economic releases next week, including September's industrial output, retail sales figures, third-quarter GDP, and the adjustment of the monthly loan prime rate. Meanwhile, traders paid little attention to the comments by U.S. Treasury Secretary Scott Bessent, who indicated the possibility of Washington extending the pause on Chinese import duties beyond three months, should Beijing decide to revoke its new rare-earth export controls. Nio shares saw a steep drop of over 13% before partially recovering, influenced by a lawsuit from Singapore’s GIC. Shares of Xiaomi fell by 3.8%, XPeng by 3.5%, and SMIC by 2.6%, collectively weighing down the index. Conversely, the financial sector witnessed gains due to a rotation in investor focus, lifting stocks such as China Life Insurance by 5.1%, Ping An Insurance by 1.5%, and Bank of China Hong Kong by 1.3%.