FX.co ★ Hang Seng Under Pressure to End at 2-Week Low

The Hang Seng Index declined by 462 points, or 1.7%, to settle at 26,290 on Friday, marking its fifth consecutive day of losses and reaching a two-week low. The downturn was primarily driven by a more than 3% fall in technology stocks, as China intensified its export controls on rare earth elements and tightened restrictions on chip imports to reduce dependency on U.S. technology, notably Nvidia’s AI processors. Additionally, consumer stocks fell approximately 2.7% amid investor nervousness ahead of critical Chinese economic data for September, set to be released next week, including trade balances, CPI/PPI, and credit statistics. Notable decliners in the market included Zhojin Mining (-7.4%), SMIC (-7.2%), China Hongqiao (-5.9%), Kuaishou Technology (-5.4%), and Tencent (-3.6%). Despite the sell-off, the market found some support from Wall Street’s recent record-breaking highs and speculation of a Federal Reserve interest rate cut anticipated at the end of October. Meanwhile, investor confidence in mainland Chinese stocks remained strong, with indices near decade highs following the Golden Week holiday. Over the week, the Hang Seng Index recorded a 3.1% decline, erasing the previous week’s gains.