05.11.202502:34:16UTC+00Hong Kong Shares Under Pressure in Early Deals

In Wednesday morning trading, Hong Kong's stock market fell by 328 points, equivalent to a 1.3% decrease, settling at 25,628. This decline continues a two-session losing streak, exacerbated by notable declines across various sectors. The market sentiment was further dampened by an overnight selloff on Wall Street, driven by concerns over inflated valuations, which in turn, discouraged investors from taking on additional risks. Additionally, apprehension was heightened following a private survey that revealed China's services sector experienced the slowest growth in three months during October, due to weak international demand and ongoing job reductions. However, the impact was somewhat mitigated by the third consecutive month of expansion in Hong Kong's private sector activity, as evidenced by the PMI reaching an 11-month peak.

On the trade front, there will be a reduction in tariffs on fentanyl-related imports from 20% to 10%, effective November 10. Meanwhile, the corresponding tariffs on Chinese merchandise will remain at 10% for the following year. Among the significant decliners were China Taiping Insurance, which dropped 3.4%, SenseTime Group with a 3.1% decline, Sunny Optical Technology falling by 3.0%, and Ubtech Robotics decreasing by 2.8%. Additionally, electric vehicle manufacturer Seres Group saw its shares fall nearly 2% during its market debut in Hong Kong.