The Hang Seng dropped 72 points, or 0.4%, to close at 19,688 on Monday after initially trading higher in the morning.
Hang Seng falls, Xpeng gains on Volkswagen deal
The index was dragged down by losses across various sectors as sentiment soured, with Chinese markets slipping to a near three-month low. This marked the fourth consecutive session of declines, fueled by concerns over a sluggish recovery and trade risks tied to a potential return of Trump to the White House. However, losses were limited by a private sector survey showing China’s services activity grew at its fastest pace in seven months in December despite declining overseas orders and rising cost pressures.
Shanghai, Shenzhen pledge openings; Xpeng rises on deal
Meanwhile, the Shanghai and Shenzhen exchanges met with foreign institutions over the weekend, promising further opening of China's stock markets. Among the top index decliners, Tencent Holdings and Meituan fell by 1.2% and 2.2%, respectively. Other notable losers included JD Logistics (-6.7%), Pop Mart International (-5.7%), and China Hongqiao Group (-3.7%). In contrast, Xpeng Inc. rose 3.1% after announcing an expanded partnership with Volkswagen to develop ultra-fast EV charging networks in China.
