Hang Seng drops 2.2% amid weak Chinese data and tariff concerns

The Hang Seng dropped 437 points, or 2.2%, to close at 19,623 on Thursday, marking the steepest decline on the first trading day of the year since 2016.

Hang Seng drops 2.2% amid weak Chinese data and tariff concerns

The slump came amid weak Chinese factory activity in December and concerns about potential tariff hikes by the Trump administration, which could negatively impact China's exports. Market sentiment remained cautious, with traders anticipating no clear direction until the National People's Congress in March when Beijing is expected to unveil its 2025 growth targets. Losses were widespread, particularly in financials, which fell by around 3%. A rise in US futures helped limit further declines, as investors bet Wall Street could maintain the momentum from substantial 2024 gains.

Sun Art falls 20% as Alibaba sells stake; other stocks drop

Notable decliners included Sun Art, which plunged 20% following Alibaba's decision to sell its majority stake in the retailer, as well as Semicon Manufacturing (-9%), Citic Ltd. (-5.3%), and Sunny Optical Tech (-4.6%).