Hong Kong Stocks Start 2025 with Weak Performance Amid Concerns Over China Manufacturing

Hong Kong’s stock market began the new year on a weak note as investors expressed concerns about the economic growth outlook in China and the overall global economic situation, especially with the upcoming return of Donald Trump as president.

The Hang Seng Index decreased by 2.5 percent, reaching 19,560.32 points as of 10:16 a.m. local time. Similarly, the Hang Seng Tech Index fell by 2.4 percent. On the mainland, the CSI 300 Index saw a decline of 1.6 percent, while the Shanghai Composite Index dropped by 1.1 percent.

Recent data from the Caixin manufacturing purchasing managers’ index (PMI), which primarily reflects the performance of smaller companies, showed a decline to 50.5 in December from 51.5 the previous month. This figure, though still above the 50 mark that indicates growth, was below the expected median forecast of 51.7 by economists surveyed by Bloomberg.

In the United States, stocks ended 2024 facing four successive days of decline as investors shifted their focus to the anticipated impact of potential tariffs and inflation-inducing policies that may come from the Trump administration.

Among other notable Asia-Pacific markets, Japan’s Nikkei 225 fell by 1 percent, and South Korea’s Kospi index lost less than 0.1 percent. However, Australia’s S&P/ASX 200 managed a slight gain of 0.4 percent.

stocks, China, manufacturing