HKSE Market Recap: Hong Kong Stocks See Volatile Week Amid Trade Tensions, Property Sector Strain
The Hong Kong stock market endured a rollercoaster week as global trade uncertainty and renewed concerns over the local property sector rattled investor confidence.
The Hang Seng Index began the week with a sharp 2.5% drop on June 2, hit by renewed US-China trade tensions after Washington signalled fresh tariff hikes on Chinese steel and aluminium. Adding to the pressure, shares of New World Development plummeted following its announcement to defer bond coupon payments, fuelling broader fears over the financial health of Hong Kong's property developers.
Midweek brought a temporary reprieve. The market rebounded nearly 500 points across June 4 and 5, lifted by strong flows into exchange-traded products, increased derivatives activity and growing mainland investor participation via the Stock Connect programme. The surge in structured product trading helped restore short-term confidence.
However, gains faded on June 6. While a phone call between US President Donald Trump and Chinese President Xi Jinping signalled a diplomatic thaw, no concrete progress emerged, prompting a 0.48% dip to close the week.
The Hang Seng Index ended near 23,793, reflecting continued investor caution as attention turns to key US economic data and central bank signals in the coming days.
Key Takeaway: Market direction remains sensitive to geopolitical developments and local debt stress, with volatility expected to persist into the next trading cycle. Related
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