[WORLD] Hong Kong stocks slipped on Thursday, ending a three-day winning streak, after investor sentiment took a hit following remarks from US Treasury Secretary Janet Yellen that dampened expectations for a unilateral reduction in tariffs by Washington.
Speaking at a press briefing on Wednesday, Yellen clarified that any changes to tariffs on Chinese imports would need to be part of a broader negotiation framework, signaling that immediate relief was unlikely. Her comments tempered optimism among investors, particularly in sectors like technology and consumer goods, which are heavily reliant on trade flows between the US and China. Ongoing concerns about inflation and persistent supply chain disruptions added to the cautious mood in the markets.
The Hang Seng Index dropped 1.2 per cent to 21,805.29 at the midday break, retreating after a 2.4 per cent rally in the previous session. The Hang Seng Tech Index fared worse, declining 2 per cent. On the mainland, the CSI 300 and the Shanghai Composite Index both edged down 0.1 per cent.
Market analysts pointed out that technology stocks, which had been leading recent gains, bore the brunt of Thursday’s downturn. "Investors are re-evaluating the prospects for growth-oriented stocks amid rising interest rates and increasing geopolitical uncertainty," said Kelvin Wong, a market strategist at a local brokerage firm. "The absence of progress on tariff rollbacks adds another headwind, particularly for firms with substantial exposure to US markets."
Among the notable losers, JD.com slid 5.3 per cent to HK$125.40, Meituan shed 4.9 per cent to HK$127.40, and Trip.com fell 2.1 per cent to HK$446.00.
The pullback in JD.com and Meituan reflected broader unease about the pace of China’s consumer recovery. While recent retail data has pointed to some improvement, spending remains below pre-pandemic levels. Trip.com’s decline underscored lingering uncertainties in the travel sector, as international mobility remains constrained by China’s strict COVID-19 border policies, despite a loosening of domestic restrictions.
Investors are now closely monitoring upcoming policy meetings in both the US and China for potential guidance. The Federal Reserve’s next interest rate announcement, along with China’s forthcoming economic policy discussions, are expected to offer further insight into whether current market volatility will continue or begin to subside.
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