Hong Kong Stocks Retreat to 2-Week Low
Hong Kong stocks fell to a two-week low, dropping 196 points or 0.8% to 25,565, influenced by Wall Street's decline and concerns over a "hawkish cut" by the U.S. Federal Reserve. The decline was limited by China's Politburo's promise to boost domestic demand and support the economy. Leading decliners included China Hongqiao Group, Zijin Gold International, Pop Mart International, and Xiaomi Corp.
Equities in Hong Kong fell 196 points or 0.8% to 25,565 in early trade Tuesday, extending losses for a second session after Wall Street weakened overnight.
Sentiment was pressured by worries that the U.S. Federal Reserve may deliver a “hawkish cut” Wednesday, lowering rates while signaling a possible pause in January.
The benchmark index touched a two-week low as caution grew ahead of China’s November CPI and PPI releases due Wednesday.
Still, downside was limited after the Chinese Politburo vowed to boost domestic demand and support the economy with more proactive measures in 2026, including “more proactive fiscal policy” and “appropriately loose monetary policy.” Separately, U.S. President Trump said Nvidia would be allowed to ship its H200 chips to approved buyers in China under national-security conditions.
Leading decliners included China Hongqiao Group (-2.9%), Zijin Gold International (-2.8%), Pop Mart International (-2.4%), and Xiaomi Corp. (-1.6%).
