FX.co ★ Hong Kong Stocks Under Pressure, Still Head for Solid Monthly Gain

Hong Kong shares declined by 412 points, or 1.5%, to 27,545 during early trading on Friday, interrupting a seven-session winning streak amid widespread sectoral losses. Investors opted to take profits after the markets reached a 4-1/2-year high the previous day, while caution was prevalent in anticipation of China's official January PMI data, expected over the weekend. Market sentiment was further dampened by a significant fall in U.S. stock futures following a predominantly lower closing on Wall Street, prompted by Apple's warning of potential margin pressures. Among the notable decliners, Zijin Mining Group dropped 6.9%, Zhaojin Mining fell 4.1%, Kuaishou Technology declined by 2.9%, and Li Auto decreased by 2.4%. Despite this downturn, Hong Kong equities are on track to achieve a third consecutive weekly gain and are set to record their first monthly increase in four months, having risen approximately 8% to date. This positive performance is driven by signs of stabilization in the city's real estate market. In a notable development in China, authorities have reportedly lifted the requirement for construction firms to submit monthly data concerning debt ratio limits, thus loosening financing restrictions that had been in place since 2020.