Hong Kong Stocks Fall on Slowing China Growth and Geopolitical Risks; Pak Shares Surge 39%
Hong Kong stocks closed lower on Monday, as investors digested China's slowing economic growth in the fourth quarter and reassessed rising geopolitical risks after the United States signaled the possibility of new tariffs against Europe.
The Hang Seng Index fell 281.06 points, or 1.1%, to 26,563.90. Meanwhile, the Hang Seng China Enterprises Index fell 86.36 points, or 0.9%, to 9,134.45.
China's gross domestic product (GDP) grew 4.5% in the fourth quarter of 2025, down from 4.8% in the previous quarter, but slightly better than the 4.4% forecast in a Reuters survey.
On an annual basis, China's economy grew 5%, in line with the government's annual growth target.
Meanwhile, US President Donald Trump announced on Saturday that he would impose a new round of escalating tariffs on European allies following their rejection of his proposed takeover of Greenland.
In a post on Truth Social, Trump stated that an additional 10% import tariff would take effect on February 1st on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and the United Kingdom.
In the corporate sector, Pak Tak International (HKG:2668) surged 39% after signing a memorandum of understanding (MoU) to explore the possibility of acquiring part or all of a stake in a Tanzania-based gold company.
Meanwhile, GOME Retail closed nearly 27% higher after announcing plans to issue more than 25 billion shares to settle outstanding payables of approximately 336.8 million yuan. (yds)
Source: Newsmaker.id
