Hong Kong's Hang Seng index fell 193 points (0.9%) to close at 20,597 on Wednesday, partially reversing the previous day's gains.
Hang Seng dips amid US-China tensions
The decline mirrored a drop in US futures following Alphabet's disappointing revenue report and tracked losses in mainland Chinese markets, which reopened after the Spring Festival holiday amid escalating trade tensions between China and the US. Market uncertainty was further fueled by the White House's announcement that a call between Presidents Trump and Xi had yet to be scheduled. Adding to concerns, the US Postal Service temporarily halted inbound packages from China and Hong Kong.
China services slowdown, deepSeek sparks rally
Economic data revealed that the Caixin Services PMI reached a four-month low in January, consistent with official figures released last week. However, the index recovered some losses due to enthusiasm surrounding Chinese AI company DeepSeek. Notable stock declines included Nongfu Spring, Trip.com, Li Auto, and Galaxy Entertainment.
