Hong Kong Equities Under Pressure

Shares in Hong Kong slumped 487 points or 2.0% to 23,417 on Tuesday morning, reversing gains from the prior session amid concerns over U.S. recession risks and China’s deflation threat.

Meantime, S&P Global warned that Beijing’s stimulus efforts may not fully offset the impact of new U.S. tariffs amid slowing growth.

Separately, U.S. futures drifted lower after Fed Bostic projected only one rate cut this year, citing rising inflation due to tariff concerns.

Capping further losses, the Chinese government pledged more proactive macro policies this year.

Meanwhile, President Trump signaled potential exemptions from planned reciprocal tariffs for some nations.

All sectors dipped, with tech, consumers, and financials declining the most. Meituan fell 3.4% after a slight earnings miss.

Xiaomi tumbled 5.4% after raising $5.5B in an upsized share sale, with Citi cautioning about short-term dilution.

EV stocks also slid, including BYD Electronic (-9.0%), Geely Auto (-4.2%), and Li Auto (-3.8%).