02.02.202602:40:36UTC+00Equities in Hong Kong Under Pressure to Begin New Month

On the first trading day of February, Hong Kong stocks took a significant hit, dropping 483 points, or 1.8%, closing at 26,906. This decline continued the steep losses observed in the previous session and marked a retreat from last week’s 4.5-year peak. Investor sentiment was dampened by widespread declines across various sectors, further affected by a sharp fall in U.S. futures following bitcoin’s weekend downturn and Friday’s significant sell-off in precious metals. The environment was further complicated by a partial U.S. government shutdown as the House awaited approval of a funding agreement. In China, stocks weakened as official Purchasing Managers' Index (PMI) data revealed an unexpected contraction in manufacturing activity, reflecting subdued demand and cautious business confidence. Notably, automakers BYD Hong Kong and Geely Auto dropped 2.2% and 2.0%, respectively, following weak January sales figures. Moreover, companies in the metals and gold sectors saw declines, including Zhojin Mining, which fell by 5.3%, Chow Tai Fook by 3.5%, Zijin Gold International by 2.3%, and Laopu Gold by 1.2%. In contrast, Minimax Group bucked the trend with a 12% surge, followed by Sands China and Pop Mart International, which rose 3.8% and 3.4%, respectively.