FX.co ★ Hong Kong Stocks Edge Lower

The Hang Seng Index slipped 0.2%, or 39 points, to around 25,475 on Tuesday, mirroring overnight weakness on Wall Street as technology stocks came under pressure. Losses were limited, however, as continued strength in Hong Kong’s IPO market helped offset broader risk-off sentiment. Investor caution persisted after Monday’s sharp sell-off in Alibaba, triggered by the e-commerce giant’s announcement of an HK$80 billion share placement to finance the expansion of its artificial intelligence infrastructure. The deal intensified concerns about share dilution and the company’s rising AI-related capital expenditures. At the same time, markets continued to track Shein’s planned Hong Kong listing, which could raise up to US$1.8 billion and value the fast-fashion group at about US$27 billion. Attention also remained firmly on upcoming US economic data and potential signals from the Federal Reserve regarding the interest-rate outlook. Among notable laggards were MiniMax (-4.7%), Meituan (-2.1%), Tencent (-0.1%), Xpeng Inc. (-5.8%), and SMIC (-1.2%).