Hang Seng falls for third session amid market concerns

The Hang Seng dropped 95 points, or 0.5%, to close at 19,700 on Tuesday, marking its third consecutive loss amid a sharp decline in US futures following a record close on Wall Street’s Nasdaq.

Hang Seng falls for third session amid market concerns

The index hit its lowest point in over a week, pressured by a third straight session of losses in Chinese markets and heightened caution ahead of the People's Bank of China's (PBoC) monthly review of key lending rates later this week after reaching record-low levels in November. However, a Reuters report partly offset losses, suggesting China plans a record 4% budget deficit in 2025 to support a more proactive fiscal policy. Additionally, China’s projected annual growth rate for 2025 is expected to remain around 5%, which aligns with the 2024 target.

Property, consumer, and tech sectors drag Hang Seng lower

The property, consumer, and tech sectors weighed heavily on the index. Among the biggest losers were Synagistics Ltd. (-8.2%), Miniso Group (-3.2%), Wuxi Biologics (-2.6%), Techtronic Industries (-2.2%), and China Hongqiao Group (-1.7%).