FX.co ★ Hong Kong Stocks Give Back Gains

The Hang Seng Index fell 0.9%, or 206 points, to 22,819 on Tuesday, surrendering part of the previous session’s gains as investors turned cautious despite ongoing policy support from Beijing. Sentiment stayed muted even after the People’s Bank of China conducted overnight reverse repo operations to keep liquidity ample in the financial system, with the move offering only modest support to equities. Investors also weighed concerns that Chinese stocks continue to trail the global, AI-driven rally—despite robust gains in overseas markets—underscoring persistent uncertainty about the strength of China’s economic recovery. The day’s losses were led by InSilico Medicine (-10.2%), Trip.com (-2.5%), Pop Mart (-2.0%), Kuaishou Technology (-1.8%), and Techtronic Industries (-1.3%). At the same time, market participants tracked Nexchip Semiconductor’s planned Hong Kong initial public offering, which could raise up to US$890.3 million, while looking for additional policy measures to bolster growth.