Hong Kong stocks fell sharply in early Friday trading, with the Hang Seng Index dropping 446 points, or 1.7%, to 26,588. The decline extended losses into a second session, following a steep overnight sell-off on Wall Street driven by renewed concerns over AI-related disruptions.
Sentiment was further weighed down by fresh data from China, which showed new home prices falling 3.3% year-on-year in January—the steepest decline in seven months. The figures highlighted Beijing’s ongoing difficulties in stabilizing the property market and added to broader risk aversion.
Selling pressure was broad-based, with all sectors retreating. Financials, consumer-related stocks, and technology names led the declines. Notable underperformers included Tencent Music (-9.2%), Wuxi Biologics (-4.2%), Meituan (-3.1%), AIA Group (-3.0%), and Trip.com (-1.9%).
Losses were partially offset by reports that Washington has postponed the implementation of key technology-related security measures against Beijing ahead of an April summit between U.S. President Donald Trump and Chinese President Xi Jinping.
On a weekly basis, the Hong Kong market was little changed. Trading will be suspended from Monday through Thursday for the Lunar New Year holiday.
