FX.co ★ Hong Kong Stocks Trade Slightly Lower

Hong Kong stocks saw a decrease of 50 points, or 0.2%, settling at 24,851 during Wednesday's morning session. This decline halted a two-day upward trend as there was notable weakness in the technology, consumer, and financial sectors. Investor sentiment dimmed following a downturn in Wall Street, attributed to disappointing U.S. economic data that highlighted the adverse effects of tariffs on both economic activity and corporate earnings. Additionally, risk appetite waned with reports of two Chinese nationals being arrested in California over alleged attempts to smuggle AI chips, including Nvidia H100 models, to China. Market caution was evident ahead of the release of China's July trade figures and inflation reports, with persistent worries regarding the consequences of increased trade barriers and ongoing deflation threats. Despite these challenges, further declines were curbed somewhat by comments from U.S. President Trump, who indicated that discussions between Washington and Beijing were "very close" to extending their trade truce, set to conclude on August 12. Key shares that experienced losses included Li Auto, down 3.5%, CSPC Pharmaceutical, down 2.9%, Meituan, down 2.0%, and MGM China, down 1.3%. Conversely, Wuling Motors saw a significant rise, surging 7.7% on a positive profit forecast for the first half of the year.