Sino-U.S. Tariff Tensions Sink Hong Kong Stocks
Hong Kong stocks hit a three-week low due to renewed Sino-U.S. tariff tensions, with the Hang Seng Index dropping 2.4%. China rebuked U.S. accusations on trade, threatening to take measures to protect its interests. Property firm New World Development led declines, falling over 10% after coupon payment deferral.
Hong Kong's stock market experienced a sharp downturn on Monday, retreating to a three-week low amid escalating Sino-U.S. tariff tensions. The Hang Seng Index decreased by 2.4% to reach 22,734.05, marking its lowest level since May 8. Similarly, the Hang Seng China Enterprises Index fell by 2.7%.
Tensions rose after U.S. President Donald Trump accused Beijing of not adhering to agreements made during Geneva talks, a claim China's Commerce Ministry fiercely dismissed as 'groundless.' As a response, China pledged to implement 'forceful measures' to safeguard its interests, contributing to widespread declines in Hong Kong's stock sectors, including tech, property, and healthcare, which all saw over 3% losses.
The local property sector was particularly hard-hit, with New World Development seeing a significant 10% drop in its stock value to a new two-month low after announcing the deferral of coupon payments.
(With inputs from agencies.)
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