Hong Kong Stocks Drop Toward 11-Month Lows

The Hang Seng Index fell 208 points, or 0.9%, to 24,350 on Wednesday, extending losses to a sixth consecutive session and hovering near its lowest level since July 2025. Investor sentiment remained fragile amid escalating tensions in the Middle East and a renewed selloff in selected technology shares. Markets were pressured after reports that US forces launched fresh strikes against Iran following the downing of an American helicopter, raising concerns about broader regional instability and threatening a fragile ceasefire. Oil prices also rebounded on fears of potential supply disruptions. Meanwhile, investors assessed China’s latest inflation data, which showed annual consumer price growth held steady at 1.2% in May, unchanged from April, reinforcing expectations that policymakers may continue implementing measures to aid economic recovery. Among the biggest decliners were Lenovo (-5.2%), Xiaomi (-1.8%), HKEX (-0.7%), SMIC (-0.9%), and Knowledge Atlas Technology (-3.4%).

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