Mid-December Asian market movements showed divergence, with Hong Kong stocks leading regional declines. The Hang Seng Index closed at midday at 25,139 points, down 1.9%, hitting its lowest level since early September. Among 89 constituent stocks, only 5 closed in the red — this is not merely a numerical decline, but reflects a clear shift in market risk sentiment.
Tech Selloff Reveals Market Concerns Over China's Growth
The Hang Seng Tech Index fell 2.4%, with major stocks including Alibaba, Tencent, and SMIC all declining sharply. Alibaba dropped 3.6% to HK$143.3, SMIC fell 3.6% to HK$62.35, and China Hongqiao plummeted 5.8% to HK$30.08. Behind this wave of tech stocks leading declines lies a core concern: weakening fundamentals in China's economy.
Following the November economic data release, market concerns intensified. Retail sales grew only 1.3% year-over-year, far below the expected 2.9% and marking a post-pandemic low; fixed