Hong Kong Stocks See Largest Weekly Drop Since April Amid Global Tensions
Hong Kong stocks experienced a significant decline this week, the steepest since April, due to a lack of new stimulus measures and increasing global tensions, particularly concerning Iran and Israel. Despite recent recoveries, market sentiment remains cautious, with potential short-term stagnation and range-bound share valuations anticipated.
On Friday, Hong Kong stocks managed a slight recovery, yet they still concluded the week with their most substantial drop since April. This downturn is primarily attributed to the absence of new stimulus measures and heightened global tensions, particularly those surrounding the Iran-Israel situation.
Despite recent recoveries from earlier losses due to U.S.-imposed tariffs, investor sentiment remains fragile. The annual Lujiazui Forum, an assembly of prominent financial regulators and participants, concluded recently without providing any new capital market stimulus, leaving some investors unimpressed.
Mainland investors' decreasing interest has further impacted the Hong Kong market. Recent purchases via the Stock Connect scheme have slumped to 16 billion yuan this week, a significant decrease from peak levels in April. Market watchers suggest short-term stagnation, with limited downside and potential policy-driven gains on the horizon.
(With inputs from agencies.)
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