On July 9, 2025, the Hang Seng Index fell by 0.86% to close at 23,941, reversing the previous day's gains. This decline was fueled by China's producer prices dropping 3.6% year-on-year in June, the steepest fall since July 2023. (Source: Financial Times, Reuters)
The deflationary trend, ongoing since September 2022, has increased concerns about corporate profitability, especially in the tech and EV sectors. Major tech firms like Baidu and Alibaba saw losses, contributing to a 1.16% drop in the Hang Seng TECH Index. (Source: Financial Times, Reuters)
Escalating trade tensions, with U.S. tariff threats on copper, semiconductors, and pharmaceuticals, further dampened investor sentiment. While Mainland China's CSI 300 and Shanghai Composite Index rose, Hong Kong's Hang Seng Index declined. (Source: Financial Times, Reuters)
Chinese authorities are intensifying criticism of manufacturers due to overproduction and price competition, signaling potential "supply-side reforms." The interplay between domestic economic challenges and international trade policies continues to influence market dynamics. (Source: Financial Times, Reuters)