AI Euphoria Eases, Hang Seng Slips
The Hang Seng Index weakened again at the close on Friday, dropping around 0.3% to 26,845, extending its correction for the second straight session after fading early gains. Pressure came from the weakness of most sectors, while market participants opted for a more defensive stance ahead of a series of major Chinese data releases next week—from fourth-quarter GDP, industrial production, retail sales, to the benchmark lending rate (LPR).
Sentiment was also weighed down by the weakening trend in mainland Chinese markets, triggering profit-taking after the previous rally fueled by AI optimism and sending the market to its highest level in a decade. On the policy front, the market grew cautious after Beijing announced tightening margin financing rules, which will take effect on January 19, potentially tightening leverage speculation.
Despite closing in the red, Hong Kong's weekly performance was still positive—the Hang Seng still posted a gain of around 2.3% and managed to reverse the previous week's decline. Support came after the People's Bank of China (PBOC) signaled that there was still room for RRR and policy rate cuts, plus December's new yuan loan data beat expectations thanks to stronger year-end demand. On the stock board, Chow Tai Fook fell around 1.5%, Haidilao weakened 1.3% following a CEO change, while greater pressure was seen on Pop Mart (-5.7%), Tencent Music (-4.7%), and Xiaomi (-1.9%).
Source: Newsmaker.id
