On Thursday, the Hang Seng Index declined by 163 points, or 0.7%, closing at 21,910, thereby ending a three-day upward trend. The decline was observed following indications from Washington that, although open to alleviating tariffs on China, unilateral actions were off the table. Simultaneously, U.S. markets saw a dip in futures despite Wall Street recording a second consecutive day of gains on Wednesday, with investors cautiously anticipating earnings reports from major companies such as Alphabet, Intel, and PepsiCo later today.
In Hong Kong, the downward trend was somewhat tempered by news that China has commenced issuing special sovereign bonds to bolster its economy against escalating trade tensions, with plans to raise CNY 286 billion through a tripartite bond sale. Additionally, Beijing announced a reduction in its negative list for foreign investors, cutting the number of restricted industries from 117 to 106, in a move to enhance market access.
By the end of the session, all sectors registered losses, with technology and consumer sectors among the most affected. Prominent declines were noted in companies such as Meituan which fell by 5.8%, Mixue Group down by 5.4%, Kuaishou Tech dropping 2.7%, Geely Auto decreasing 2.6%, and Trip.com slipping by 1.9%.
