Hong Kong stocks ended the Sept 28-Oct 2 week sharply lower, with the Hang Seng Index (HSI) losing 537.80 points, or 2.2%, from Sept 25 to close at 23,972.29, as a steep final-session sell-off erased gains earlier in the week.
The benchmark began positively, gaining 0.5% on Sept 28 to 24,642.51, before slipping 0.5% to 24,523.57 the next day as technology shares weakened amid elevated US Treasury yields, US-China tensions in the artificial intelligence and chip sectors and cooling appetite for some technology-linked listings. The Hang Seng Tech Index fell 1.1% on Sept 29.
The HSI recovered 0.4% on Sept 30 to 24,613.27, but sentiment remained fragile as investors weighed higher global borrowing costs, uncertainty over further US interest-rate increases and disappointment over the strength of Beijing’s economic support measures. Hong Kong’s market was closed on Oct 1 for the National Day holiday.
Selling intensified when trading resumed the next day, sending the HSI tumbling 640.98 points, or 2.6%, to 23,972.29, its biggest decline of the week. Higher US Treasury yields and oil prices above US$100 a barrel weighed on risk appetite, while the absence of southbound Stock Connect flows during mainland China’s Golden Week holiday removed a key source of buying support.
Financial and technology heavyweights led the rout on Oct 2, with HSBC, AIA and Standard Chartered suffering steep losses, while Alibaba, JD.com and Baidu also declined. The sharp reversal left the Hang Seng below the 24,000-mark, capping a volatile four-session week dominated by concerns over rates, energy prices and China’s economic outlook.
