The Hang Seng dropped 353 points, or 1.5%, to close at a one-month low of 22,850 on Thursday, weighed down by widespread losses across sectors.
Hong Kong stocks slip to close at one-month low
Investor sentiment was dampened by escalating concerns over the ongoing trade dispute with the U.S., as China vowed "resolute" retaliation following the announcement of larger-than-expected tariffs from President Trump. The U.S. imposed an additional 34% levy on Chinese imports, stacking on top of a 20% tariff that had already been enacted earlier in the year. This move sparked fears of further disruption to global trade, with market participants worried about its impact on the global economy.
U.S. futures also plummet
U.S. futures also plummeted sharply, with growing apprehension that the intensifying trade tensions would complicate efforts by central banks worldwide to lower interest rates in response to slowing growth. The technology sector bore the brunt of the losses, with tech stocks dropping around 2%, followed closely by declines in the consumer and financial sectors.
How stocks performed
While losses were widespread, there was some support from hopes that China would soon roll out additional stimulus measures to mitigate the effects of the tariffs, particularly aimed at boosting domestic consumption. Chinese e-commerce stocks listed in Hong Kong saw significant declines, with Alibaba falling by 5.1% and JD.com dropping 5.0%. Other notable decliners included Shenzhou International (-13.7%), Techtronic Industries (-12.6%), and BYD Electronic International (-8.7%), further adding to the market's downward pressure. Despite the tough environment, some analysts held on to cautious optimism, anticipating potential policy actions from Beijing to stabilize the economy.
