FX.co ★ Hang Seng Dips 1.3% at Close

The Hang Seng Index declined by 334 points, or 1.3%, concluding at 25,761 on Wednesday, thus halting a two-day increase as every sector experienced downturns. Investor sentiment deteriorated following a private survey indicating that China's service sector activity expanded at the slowest pace in five months during November. This compounded existing concerns stemming from escalating financial challenges faced by property behemoth Vanke. The property sector experienced the most pronounced losses, falling by 1.6%. This drop occurred subsequent to Fitch placing Vanke under "Rating Watch Negative" and downgrading notes from one of its subsidiaries. Additionally, stocks in the financial, technology, and consumer sectors pulled back amid diminishing expectations for fresh economic stimulus measures before the year's end. However, the downward trend was partially mitigated by a Reuters report stating that China has issued its inaugural batch of new rare earth export licenses, which is anticipated to expedite shipments to certain customers. Concurrently, U.S. futures saw a slight increase, buoyed by optimism that the Federal Reserve may opt for a rate cut in its upcoming session, as signs indicate a cooling labor market. Notable underperformers included PICC Property & Casualty (-4.1%), Wuxi XDC Cayman (-3.8%), Horizon Robotics (-3.4%), China Resources Land (-3.2%), and SMIC (-1.8%).