The Hang Seng Index closed nearly unchanged at 20,217 on the first trading day of February, stabilizing after steep losses earlier in the session as gains in tech and consumer sectors helped offset declines in property and financial stocks.
Hang Seng ends almost flat on Monday
Investors assessed fresh geopolitical and economic developments, including a Wall Street Journal report suggesting that Beijing is working to prevent tariff hikes and tech restrictions from the Trump administration. In response, China’s Commerce Ministry was reportedly preparing to file a formal complaint with the World Trade Organization (WTO), signaling potential trade tensions ahead.
Macro update
On the economic front, a private survey showed that China’s manufacturing sector grew at its slowest pace in four months at the start of 2025, adding to concerns over sluggish domestic demand. However, traders remained cautiously optimistic, looking ahead to the country’s annual legislative meeting in March for possible new stimulus measures to aid market recovery and economic growth.
Alibaba leads tha gains
Among individual stocks, Alibaba Group Holdings surged 6.5% after announcing that its latest AI model outperformed Meta Platforms' Llama and DeepSeek's V3 in multiple benchmark tests, boosting sentiment in the tech sector. Meanwhile, Li Auto tumbled 5.7% after reporting disappointing January sales figures, raising concerns about demand trends in China’s electric vehicle (EV) market. In the gaming sector, Galaxy Entertainment slid nearly 6% as gambling revenue saw a slight decline for the month, reflecting ongoing volatility in Macau’s casino industry.
Despite mixed economic signals, investors are closely watching upcoming policy decisions and corporate earnings releases for further direction in the market.
