Hang Seng plunges, logs second straight weekly drop

The Hang Seng tumbled 530 points, or 2.2%, to close at 23,690 on Friday, marking its second consecutive day of decline amid steep losses across all sectors. The index fell 1.1% for the week, extending its losing streak to two weeks, as mounting profit-taking in tech stocks and growing caution ahead of upcoming Chinese corporate earnings continued to pressure investor sentiment.

Hang Seng plunges, logs second straight weekly drop

The market's retreat was driven by weakness in major tech stocks, with Semiconductor Manufacturing sinking 7.1% to a one-month low, while Kuaishou Tech (-5.4%), Alibaba Group (-3.5%), and Tencent (-2.0%) also suffered sharp drops. These losses reflected growing concerns over slowing growth in the sector, compounded by uncertainty surrounding earnings reports and a broader slowdown in consumer and business activity. In addition to the tech sector, consumer, property, and financial stocks also retreated. The recent announcement of China's “special action plan” to boost consumption and stabilize markets failed to provide fresh details or concrete measures, leaving investors uncertain about the plan's effectiveness. The lack of clarity added to the sense of unease, as markets had hoped for more decisive actions to support the flagging economy. Furthermore, broader macroeconomic concerns, including rising trade tensions, contributed to the overall market decline.

Major decliners

Beyond the tech sector, other major decliners included Zhejiang Leapmotor (-8.0%), CK Asset (-5.9%), Innovent Biologics (-5.2%), and Geely Auto (-4.6%), which all faced significant losses as investors continued to sell off riskier assets in anticipation of potential economic headwinds. The widespread declines across multiple sectors painted a grim picture for the market, with investor confidence shaken by a combination of domestic and external pressures.