The Hang Seng fell 79 points, or 0.4%, to close at 19,151 on Monday, marking its third consecutive decline and hitting a two-month low due to widespread losses across sectors.
Hang Seng retreats for third session
Investor sentiment remained cautious as Chinese markets extended their downturn to a three-week low amid expectations that the Biden administration will announce new export restrictions on China, potentially adding up to 200 Chinese chip companies to a trade blacklist. Concerns over China’s sluggish economic recovery also resurfaced ahead of key data on PMI and industrial profits later this week.
What caused the dip
Adding to the bearish tone was news suggesting China and Germany are close to resolving disputes over tariffs on Chinese EV imports into Europe. Meanwhile, US futures gained, with optimism surrounding Treasury Secretary nominee Scott Bessent, who is expected to prioritize economic and market stability. Among major decliners were KE Holdings (-5.6%), Meituan (-2.7%), Sands China (-2.6%), and Tencent Holdings (-1.5%).
