Hong Kong Hang Seng Index falls 1% to 24,525.45 points

Hong Kong Hang Seng Index falls 1% to 24,525.45 points

The Hong Kong Hang Seng Index (^HSI) experienced a 1% drop on July 2, 2025, closing at 24,525.45 points. This decline was largely driven by market jitters following the United States' latest tariff adjustments and weak China PMI data [4]. The Hang Seng Index, which tracks the performance of the largest companies listed on the Hong Kong Stock Exchange, has been under pressure due to geopolitical tensions and economic uncertainties.

The U.S. President Donald Trump's announcement of updated tariff rates on several Asia-Pacific countries, including Japan, South Korea, and China, has created uncertainty in the region. The tariffs, ranging from 10% to 41%, have negatively impacted investor sentiment, leading to a lower opening for the Hang Seng Index on Friday [3]. Additionally, weak China PMI data has added to the downward pressure on the index, as it underscores the urgency for stimulus action in the country [4].

Despite the overall decline, the Hang Seng Index has shown resilience, with the information technology sector contributing to the index's performance. Tech stocks, such as Alibaba and Baidu, have provided some support to the index, limiting further losses. The Hang Seng Composite Index on information technology firms (.HSCIIT) eased by 0.5%, while the Hang Seng Index slipped by 0.1% [5].

The recent surge in fintech activities, particularly in stablecoin development, has not been enough to offset the broader market concerns. Several fintech companies, including OSL Group and Dmall Inc, have raised significant funds to expand their operations in stablecoins and digital assets. However, the overall market sentiment remains cautious, as investors are wary of the regulatory environment and potential risks associated with cryptocurrencies [2].

In summary, the Hong Kong Hang Seng Index's 1% decline on July 2, 2025, reflects broader market concerns over U.S. tariffs and weak China PMI data. While fintech activities continue to drive investment, the overall market remains volatile, and investors are advised to stay vigilant.

References:
[1] https://finance.yahoo.com/quote/%5EHSI/
[2] https://finance.yahoo.com/news/fintech-firms-rush-raise-equity-044901730.html
[3] https://www.cnbc.com/2025/08/01/asia-stock-markets-today-live-updates-nikkei-225-asx-200-kospi-hang-seng-csi-300-sensex-nifty-50.html
[4] https://www.fxempire.com/forecasts/article/hang-seng-index-news-fed-rate-jitters-and-weak-china-pmi-weigh-on-bulls-1537970
[5] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3TT030:0-hong-kong-listed-china-ruyi-slips-on-discounted-share-sale/