The Hong Kong stock market slump continued as investor sentiment took a hit from growing concerns about China’s weakening growth prospects. The Hang Seng Index closed 1.5% lower at 25,235.41, marking its lowest level since November 21, 2025. The drop was broad-based, with nearly all stocks on the 89-member benchmark falling, while the Hang Seng Tech Index saw a 1.7% decline.
China’s Economic Slowdown Weighs on Market Sentiment
The downturn in the Hong Kong stock market follows disappointing economic data from China, which showed a deceleration in several key sectors. Retail growth weakened to its slowest pace since the COVID-19 pandemic, while fixed-asset investment continued its contraction. A decline in home prices also remained unabated, fueling further worries about the health of the Chinese economy and its impact on the broader region.
Investors Cautious Ahead of U.S. Jobs Report
Investors are also staying cautious ahead of the U.S. labor market report for November, due later this week. This data, which includes estimates for October delayed by the government shutdown, could influence future Federal Reserve actions regarding interest rates. A stronger-than-expected report might reduce the likelihood of monetary easing, adding pressure to technology stock valuations that have already been stretched.
