26.08.202502:41:45UTC+00Shares in Hong Kong Drop from Near 4-Year Peak

In the Tuesday morning session, Hong Kong's stock market experienced a decline, with the Hang Seng Index dropping by 98 points, or 0.4%, settling at 25,734. This decrease marked the end of a two-day upward trend, influenced by Wall Street's earlier downturn as investors considered U.S. President Trump's latest tariff threats. Reports suggested that Trump had warned of imposing "200% tariffs or something" on China should it restrict rare-earth magnet exports. Additionally, he promised retaliation against countries imposing measures against U.S. Big Tech, labeling these actions as "discriminatory." Investor caution intensified ahead of the release of China’s January to July industrial profit figures, with market confidence dampened by ongoing trade tensions, sluggish demand, and unfavorable weather conditions. Nonetheless, the downside was limited thanks to the robust performance of mainland markets, which have surged nearly 10% this month, driven by liquidity and optimism surrounding AI. In response, Shanghai's authorities have removed property taxes for first-time home buyers and eased restrictions on suburban purchases. Despite these measures, all sectors experienced declines, especially the property and technology sectors, with significant losses incurred by companies like Haidilao (-3.2%), KE Holdings (-3.5%), Innovent Biologics (-3.1%), and Semiconductor Manufacturing International Corporation (SMIC) (-2.3%).