31.10.202503:20:35UTC+00Hong Kong Shares Set to Close Month on Weak Note

Hong Kong's stock market experienced a downturn, with equities dropping by 200 points, equivalent to 0.8%, and settling at 26,078 during early trading on Friday. This marks the third consecutive session of losses, driven by declines across most sectors. Investor sentiment was negatively impacted by weak PMI data from China, showing a significant contraction in factory activity—the fastest in six months—while the services sector remained lackluster. Caution persisted among traders regarding the provisional U.S.-China trade truce, as several fundamental issues remain unresolved. Market participants are keenly awaiting Hong Kong's Q3 GDP results, scheduled for release today. Meanwhile, U.S. markets ended in the red overnight, following comments from Federal Reserve Chair Jerome Powell, who indicated that a rate cut in December “is not guaranteed,” after the Fed implemented its second rate reduction this year. Among the notable declines were SMIC, which fell by 4.5%, PICC Property & Casualty with a drop of 3.2%, Pop Mart International decreasing by 2.8%, and Tencent Holdings down by 1.5%. For the week, the market is currently on track for a slight decrease of approximately 0.3%, which could signify the first monthly decline in six months, with total losses approaching 3%.