Hang Seng falls 0.5% on profit-taking and weak trade data

The Hang Seng dropped 103 points, or 0.5%, to close at 20,311 on Tuesday, reversing an earlier morning rally amid profit-taking after the index reached its highest level in a month following the Chinese Politburo's stimulus pledge.

Hang Seng falls 0.5% on profit-taking and weak trade data

The decline marked the first drop in three sessions, as new data revealed a sharp slowdown in Chinese export growth in November and a further contraction in imports. Sentiment was also weighed down by a drop on Wall Street after several record highs, ahead of key US inflation data later this week. In business news, China launched an investigation into US chipmaker Nvidia over suspected anti-monopoly violations in a 2020 deal. Traders are now paying attention to the upcoming Central Economic Work Conference starting Wednesday.

SenseTime, Tech, and property stocks lead losses on Hang Seng

Most sectors ended lower, with technology and property stocks among the biggest losers. SenseTime Group fell 13.0% after shifting focus away from its traditional AI products, while other notable losses included Smoore Intl. (-4.3%), Wuxi Biologics (-3.7%), and BYD Electronic (-3.7%).