28.08.202508:32:18UTC+00Slides in Meituan and Alibaba Push Hang Seng to One-Week Low

On Thursday, the Hang Seng Index declined by 203 points, or 0.8%, settling at 24,999. This marked the third consecutive session of losses, predominantly driven by a dip in consumer and technology stocks. The index reached its lowest point in a week amidst escalating skepticism regarding the longevity of China's stock market rally, a trend that began in April. Investors are also cautious ahead of the release of China's official Purchasing Managers' Index (PMI) for August, expected this weekend. Shares of Meituan plummeted by 13.2% due to growing competition in the domestic food delivery sector coupled with restrained international expansion, notably in Brazil. Alibaba saw its shares decrease by 4.7% as the company sought to refinance a $6.5 billion loan due next year. Conversely, concerns over trade issues impacting Nvidia's business in China led to significant gains among local counterparts. Semiconductor Manufacturing International Corporation (SMIC) surged by 10.5%, Horizon Robotics by 13.7%, and Lenovo Group by 2.5%. The decline was partially offset by a resurgence in U.S. futures, spurred by rising expectations of a Federal Reserve rate cut next month. This follows a dovish shift by Fed Chair Jerome Powell and pressure from President Trump on the central bank.