Alibaba Leads Decline, Hang Seng Closes Down 1.6%
The Hang Seng Index closed down 1.6% to 25,633.21 in Hong Kong on Wednesday (June 3), recording its biggest daily decline since May 15, after rising 2.5% in the previous session. The decline was broad-based: 76 of 90 stocks fell, only 13 rose, and all sectors were in the red, with the commerce and industrials group experiencing the greatest pressure.
Alibaba Group was the largest negative contributor to the index, falling 3.3%. Pressure was also evident in certain stocks that fell further, with Wuxi Biologics recording the largest decline on the day, down 7.0%, indicating weakening risk appetite, particularly in high-beta stocks.
Despite the sharp daily correction, the index's position over a longer horizon still shows a gradual recovery. The Hang Seng rose 3.4% this quarter and gained 9% in the last 52 weeks, but remains 8.6% below its 52-week peak of January 29, 2026, and 10.6% above its low of June 19, 2025. Short-term, the index is up 1.2% in the last five days but down 0.6% in the 30-day period.
In terms of valuation and risk, the Hang Seng is trading at a trailing P/E ratio of 13.5 times and approximately 11.6 times estimated one-year forward earnings, with a dividend yield of 2.8% (trailing 12 months). The combined market capitalization of its constituents stands at approximately HK$30.8 trillion, while 30-day volatility rose to 17.58% from 17.06% in the previous session, indicating a rising market risk premium and likely wider room for price movement in the near term. (asd)
Source: Newsmaker.id
