Hong Kong’s equity markets experienced a significant downturn during the morning session, with all major benchmarks declining over 2%. The Hang Seng Index, Hang Seng TECH Index, and blue-chip indices all reflected heavy selling pressure, particularly in the technology sector. Market heavyweights including Meituan (-2.3%), BYD (-2.8%), SMIC (-3.1%), and Alibaba (-2.5%) led the declines as investor sentiment turned cautious amid growing macroeconomic concerns.
The previously high-flying innovative drug sector saw sharp profit-taking, with Kangfang Biological plunging 11.2% and Junshi Biologics (-7.5%), Fosun Pharma (-7.3%) suffering heavy losses. The selloff followed recent regulatory developments suggesting potential pricing pressures for pharmaceutical products, causing investors to reassess valuations in the healthcare space.
In contrast to the broad market decline, new economy consumer stocks demonstrated resilience. Pop Mart gained 1.9% while Mixue Group surged 7.2% to record highs, continuing its strong performance as investors favor companies with proven domestic consumption growth models. The divergence highlights ongoing sector rotation as market participants balance risk exposure between cyclical tech plays and defensive consumer names. Analysts note the mixed performance reflects selective positioning ahead of key economic data releases later this week.
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