09.10.202508:20:00UTC+00Hang Seng Finishes 0.3% Lower

On Thursday, the Hang Seng Index fell by 77 points, equivalent to a 0.3% drop, closing at 26,752. This marked the fourth consecutive session of declines as most sectors showed weakness. The financial sector index decreased by 0.7% following news that HSBC Holdings intends to acquire the remaining minority shares in Hang Seng Bank, where it already holds majority ownership, for approximately $13.6 billion. Consequently, shares of HSBC, listed in Hong Kong, plummeted by 5.5%, while Hang Seng Bank experienced a significant surge of 26%. Analyst Andrew Coombs from Citi highlighted investor concerns regarding the timing and pricing of this move. In the technology sector, shares declined as sentiment worsened after China expanded its export restrictions on rare earth elements, citing their technological and military significance. The consumer sector was also impacted, largely due to profit-taking in pharmaceutical stocks. Notably, Sichuan Kelun-Biotech dropped by 12.0%, with other significant losses seen in Innovent Biologics (down 9.2%), Sino Biopharm (down 7.9%), and Wuxi Biologics (down 2.8%). However, the overall losses were mitigated by a rally in mainland markets, which reached their highest levels in over a decade, driven by strong spending during the Golden Week holiday and anticipation of new policy support from Beijing.