04.11.202508:25:14UTC+00Hang Seng Reverses Early Gains to Close Lower

The Hang Seng Index declined by 206 points, or 0.8%, closing at 25,952 on Tuesday. This drop erased initial gains as investor sentiment weakened amidst broad-based sectoral declines. Particularly impacting the market was the tech sector, which fell by 1.8% following a statement from U.S. President Trump that Nvidia would be prohibited from selling its most sophisticated AI chips to China, although some sales to Beijing would still be permitted. Market participants largely disregarded news of increased subsidies in China aimed at reducing energy costs for major data centers. Furthermore, consumer and property stocks saw decreases, mirroring mainland markets, as U.S. futures plummeted amid turmoil over the Federal Reserve's rate strategy post two interest rate cuts this year, compounded by ongoing concerns regarding a potential government shutdown.

On the corporate scene, beleaguered Chinese real estate firms continued to attract attention. New World Development announced a USD 1.9 billion bond restructuring plan that includes haircuts for creditors, while Vanke's dollar-denominated bonds declined after its largest shareholder implemented tighter loan conditions. Among the notable losers were Li Auto, which fell by 3.7%, Innovent Biologics, down 3.5%, Zijin Mining Group, declining 2.9%, and Xiaomi Corporation, which decreased by 2.7%.