19.08.202508:18:50UTC+00Hang Seng Ends Lower Ahead of PBoC Rate Decision

On Tuesday, the Hang Seng index experienced a decline of 54 points, or 0.2%, closing at 25,123 and marking its fourth consecutive session of losses, culminating in its lowest close in nearly three weeks. This downturn was largely attributed to investor caution ahead of the People's Bank of China's upcoming loan prime rate review scheduled for Wednesday. Additionally, weaker U.S. futures contributed to a prevailing risk-averse sentiment in anticipation of the Jackson Hole symposium later this week. Meanwhile, newly released data revealed a sharp increase in China's youth unemployment rate, which soared to 17.8% in July from 14.5% in June, reaching its highest level since August 2024. The overall surveyed unemployment rate also rose to a four-month peak of 5.2%. Despite these developments, losses were somewhat tempered by indications of progress in resolving the Russia-Ukraine conflict, with U.S. President Trump proposing bilateral meetings with Putin and Zelensky, leading to a potential trilateral summit. Most market sectors experienced declines, particularly technology, financials, and consumer-related stocks. Notably, Li Auto fell by 2.4% following a subdued sales forecast, while semiconductor manufacturer SMIC dropped 3.8%. Pharmaceutical stocks such as Sino Biopharma decreased by 5.4%, Innovent Biologics by 4.0%, and Wuxi Biologics by 3.9%.