04.09.202508:17:51UTC+00Hang Seng Slips 1.1% at Finish

The Hang Seng Index declined by 285 points, or 1.1%, closing at 25,058 on Thursday. This marked the third consecutive session of losses, influenced by widespread declines across sectors. The downturn mirrored the fall in mainland Chinese shares, following reports that the Chinese government is considering implementing measures to cool down the stock market. These potential actions include easing certain short-selling restrictions, which led to profit-taking by investors after a notable 10% increase in Chinese stocks throughout August. This surge was largely driven by unprecedented levels of margin financing and significant trading activity, which has fueled concerns about market overheating.

The technology sector suffered the most, dropping by 1.9%, primarily due to a sharp decrease in Cambricon's stock. This decline was linked to fears of fund outflows in anticipation of an impending index rebalancing in the mainland markets. Furthermore, shares in the property, consumer, and financial sectors also declined, amidst ongoing global fiscal concerns. However, expectations of a possible interest rate cut by the Federal Reserve later this month, in light of weaker U.S. job openings data, offered some relief to market losses.

Significant stock declines were observed in companies such as Horizon Robotics (-6.9%), SMIC (-6.4%), Kuaishou Technology (-3.1%), Innovent Biologics (-6.9%), Hansoh Pharmaceutical (-4.4%), and Akeso Inc. (-4.2%).