17.10.202502:36:46UTC+00Hong Kong Equities Under Pressure

Hong Kong stocks experienced a decline of 344 points, or 1.3%, landing at 25,540 during early trading on Friday, marking their second consecutive day of losses as all market sectors saw a downturn. Investor sentiment took a hit following a drop in mainland shares and confirmation from President Trump that trade tensions with China remain high. Wall Street also closed lower, affected by struggles in the regional banking sector and an ongoing U.S. government shutdown now in its third week, which has postponed crucial economic data and raised concerns about its potential continuation into November. Traders are exercising caution as they anticipate China’s fourth plenum from October 20 to 23, during which the 2026–2030 five-year plan will be introduced. The markets are also preparing for forthcoming data releases from China, including September’s industrial output, retail sales, Q3 GDP, and a new monthly Loan Prime Rate (LPR) setting. Technology stocks led the declines, with significant drops in SMIC (-4.2%), Kuaishou Technology (-2.4%), and Meituan (-2.3%), while consumer and financial sectors also dipped due to ongoing deflation risks after the consumer and producer price indices fell short of expectations. For the week, Hong Kong's market is set to record a second consecutive week of losses, approximately down by 3%.