The Hang Seng Index dropped to 25,530 by the close of trading on Thursday, reversing earlier gains due to declines in technology and consumer stocks. The mood in the market became more subdued as Chinese markets experienced their third consecutive day of losses following Mexico's approval of a new tariff scheme affecting many Chinese imports. These tariffs, which could be as high as 50%, are set to take effect on January 1, 2026, encompassing a wide range of products, including metals, vehicles, clothing, and appliances. Additionally, there are rising concerns that Beijing may postpone substantial stimulus measures for the real estate sector, especially after the recent Politburo meeting in December omitted discussions on urbanization. Analysts predict significant actions might not occur until the latter half of 2026. Meanwhile, investors are keenly awaiting China's credit data for November, following a notable decrease in new yuan loans during October, reflecting ongoing weak consumer demand. In Hong Kong, traders are also keeping an eye on the impending third-quarter industrial production figures and jobless data for November. Among the major stocks that declined were Semiconductor Manufacturing International Corporation (SMIC) down 2.7%, Tencent Music Entertainment falling by 2.6%, Sands China dropping 2.3%, China Hongqiao decreasing by 2.0%, and China Unicom slipping by 1.2%.