2025.08.2708:23:34UTC+00Hang Seng Under Pressure at Finish

On Wednesday, the Hang Seng Index fell by 323 points, or 1.3%, closing at 25,202. This decline reversed earlier gains and marked the second consecutive day of losses as widespread selling impacted various sectors. The shift in sentiment followed reports that several Chinese brokerage firms and fund managers had restricted financing and limited purchases, citing heightened risks from the recent surge in mainland stock markets. On Tuesday, trading volumes on China's exchanges reached CNY 3.1 trillion, the second-highest level ever recorded. Investors are also exercising increased caution ahead of Nvidia's earnings announcement later today and the upcoming release of the Personal Consumption Expenditures (PCE) index on Friday. In terms of data, China's industrial profits declined by 1.5% year-on-year in July, an improvement from June's 4.3% drop, though overall profits decreased by 1.7% over the first seven months of 2025. Notable stock performances included KE Holdings, which fell 6.9%, Hansoh Pharma at -5.6%, Pop Mart International at -4.5%, Kuaishou Technology at -3.6%, and Meituan at -2.9%. Mixue Group's shares dropped 5.2% following the cancellation of its interim dividend, while Chinese sportswear company Li Ning saw a 5.3% decline due to margin pressure from aggressive discounting.