08.12.202508:19:32UTC+00Hang Seng Slips 1.2% at Finish

The Hang Seng Index fell by 320 points, or 1.2%, ending at 25,765 on Monday. This downturn marked a reversal of gains from the previous two trading sessions, as the majority of sectors experienced downturns, particularly financials, real estate, and consumer goods. Persistent worries about deflation remained before the release of the mainland's November Consumer Price Index (CPI) and Producer Price Index (PPI) data, expected later in the week. Investors also showed growing apprehension regarding an anticipated Politburo meeting and the annual Central Economic Work Conference in China, seeking insights into the policy directions for 2026. Nonetheless, the market's weakening was somewhat mitigated by the easing of regulatory measures, as leading financial institutions have reportedly been permitted to relax capital and leverage constraints. Additionally, economic data provided some relief: China's exports for November surpassed expectations following a tariff truce with the United States, while imports increased for the sixth consecutive month. Notably, Pop Mart International plummeted by 8.4%, with Zijin Mining Group down by 4.3%, Anta Sports losing 2.7%, and Techtronic Industries also dropping by 2.7%. Conversely, Baidu saw a 3.4% rise after announcing considerations for spinning off its AI chip division.