Hong Kong Stocks Begin 2025 with Weak Performance Amid Concerns Over China Manufacturing

Hong Kong's stock market started the year 2025 on a low note, as investors showed caution regarding China's economic growth and the potential impact of global economic conditions. This cautious sentiment comes as discussions around policies from the incoming U.S. administration led by president-elect Donald Trump are gaining traction.

As of 10:16 AM local time, the Hang Seng Index experienced a significant decline, falling 2.5 percent to 19,560.32. Similarly, the Hang Seng Tech Index decreased by 2.4 percent. On the mainland, the CSI 300 Index was down 1.6 percent, while the Shanghai Composite Index decreased by 1.1 percent.

Manufacturing Sector Performance

A crucial indicator of the manufacturing sector, the Caixin manufacturing purchasing managers' index (PMI), revealed a drop to 50.5 in December from 51.5 in November, as reported by Caixin and S&P Global. Although a reading above 50 suggests an expansion in manufacturing activity, this latest figure fell short of the expectations from economists, who had anticipated a median forecast of 51.7.

U.S. Market Trends

U.S. markets ended 2024 with four consecutive days of losses, which reflected investor concerns about the effects of potential tariffs and inflation-driven policies that could emerge from the Trump administration.

Across other significant markets in the Asia-Pacific region, the performance varied. Japan’s Nikkei 225 index decreased by 1 percent, while South Korea’s Kospi index fell slightly by less than 0.1 percent. Conversely, Australia’s S&P/ASX 200 index rose by 0.4 percent.

HongKong, Stocks, Manufacturing