Hong Kong equities suffered a sharp reversal this week, with the Hang Seng Index (HSI) losing 820.64 points, or 3.16%, between Monday and Friday as profit-taking and weakness in technology stocks weighed on sentiment.
The HSI started the week on a strong footing, climbing 1.05% on Monday to 25,937.49. It reached an intraday high of 25,957.75, with turnover at around HK$241 billion.
The early gains were supported by stronger regional markets, expectations of easier US monetary policy and renewed interest in Chinese technology and consumer counters. The Hang Seng China Enterprises Index also rose 0.70% to 8,587 while the Hang Seng TECH Index gained 0.40% to 4,876.
The momentum quickly faded, however, with the HSI falling around 0.40% on Tuesday as investors began locking in gains. Technology and internet stocks came under pressure while markets remained cautious ahead of key US economic data.
Selling intensified on Wednesday, when the HSI declined around 1.2% to about 25,524 points. The retreat reflected broader risk aversion across Asian markets, with technology and financial counters among those hit by profit-taking.
The Hang Seng TECH Index continued to underperform as investors reduced exposure to higher-valued growth stocks, while shifts in US interest-rate expectations and global bond yields added to the cautious mood.
Hong Kong shares remained under pressure on Thursday, with the HSI falling another 1.1% to around 25,397 points. Technology, consumer and financial stocks continued to weigh on the benchmark as investors reduced risk ahead of the weekend.
The sell-off culminated on Friday, when the HSI dropped 279.66 points, or 1.10%, to 25,116.85, marking its fourth consecutive daily decline.
The index traded between 25,089.14 and 25,311.86 during the session, with about 2.53 billion shares changing hands.
Other major benchmarks also ended lower on Friday, with the Hang Seng China Enterprises Index falling 1.02% to 8,340.83 while the Hang Seng TECH Index slid 1.77% to 4,707.62.
Overall, the HSI moved from 25,937.49 at Monday’s close to 25,116.85 on Friday, giving up its early-week advance and ending the week at its lowest level.
The sharp reversal highlighted a change in market sentiment from early optimism to risk reduction, particularly across technology and growth stocks.
