Mid-December Asian markets showed divergent trends, with Hong Kong stocks leading regional declines. The Hang Seng Index closed at mid-day at 25,139 points, down 1.9%, marking the lowest level since early September. Among 89 constituent stocks, only 5 closed in the red — this is more than just a numerical decline; it reflects a clear shift in market risk sentiment.
Tech sector slump reveals market concerns over China's growth
The Hang Seng Tech Index fell 2.4%, with major stocks including Alibaba, Tencent, and SMIC all declining sharply. Alibaba dropped 3.6% to HK$143.3, SMIC fell 3.6% to HK$62.35, and China Hongqiao Group declined 5.8% to HK$30.08. Behind this tech-led sell-off, the core issue points to weakening fundamentals in China's economy.
Following the release of November economic data, market concerns intensified. Retail sales grew only 1.3% year-over-year, far below the expected 2.9%, marking the lowest level since the pandemic; fixed asset investments also showed signs of deceleration.