06.02.202602:26:19UTC+00Hong Kong Market Slumps, Set for Steep Weekly Decline

In early trading on Friday, Hong Kong stocks experienced a significant decline, dropping 404 points, equivalent to 1.5%, to settle at 26,488. This downturn interrupted a three-day streak of recovery, largely influenced by a sharp drop in U.S. futures following a persistent tech-driven selloff on Wall Street. Meanwhile, Mainland China's shares also fell for a second consecutive session, heavily impacted by ongoing concerns about the country’s slowing economic momentum and weak demand as the mid-February Spring Festival approaches.

Investors remained wary as they awaited the upcoming release of China’s CPI and PPI data for January. December figures showed that annual inflation rose modestly to a near three-year high of 0.8%, year over year, while producer prices continued their long-term decline, falling by 1.9%, marking the end of a 39-month downward streak. The Hang Seng Index is poised for a substantial weekly drop of over 3%, marking its first loss in four weeks, although robust IPO activity provided partial support to market sentiment. Losses were widespread across various sectors, with financials (down 2%), property, and technology hit particularly hard. Among the notable laggards were AIA Group (-5.5%), Laopu Old (-3.7%), Zijin Mining Group (-3.1%), SenseTime Group (-3.0%), and SMIC (-2.2%).