Hong Kong Stocks and China Stocks Decline Following Fed Rate-Cut Expectations

Market Overview

Hong Kong stocks and China stocks experienced a decline as expectations for interest rate cuts by the Federal Reserve diminished. As of 10:05 AM local time, the Hang Seng Index fell by 1.1% to 20,522.73, and the Hang Seng Tech Index tumbled 2% to 4,514.49. On the mainland, the CSI 300 Index slid 0.8% to 3,941.66, while the Shanghai Composite Index lost 0.7% to 3,280.43.

Investor Sentiment

According to Ivan Li, a fund manager at Loyal Wealth Management in Shanghai, "Market sentiment in both Hong Kong and the mainland turned weak as some investors decided to lock up gains over the past two days by reducing their holdings." He added, "The market outlook remains cloudy since most investors are cautious on equity investment before China unveils a strong stimulus package to buoy the slowing economy and the embattled property sector."

Impact on Major Indices

The S&P 500 also declined by 0.9%, leaving traders doubtful about future rate cuts in upcoming Federal Reserve policy meetings. Meanwhile, Horizon Robotics, a Chinese autonomous driving technology firm, managed to raise US$696 million in its HK IPO, surging 27% in its trading debut.

Asian Market Summary

• Japan's Nikkei 225 slipped 0.1%
• South Korea's Kospi retreated 3.8%
• Australia's S&P/ASX 200 dropped 0.3%