06.02.202608:22:54UTC+00Hang Seng Slips 3% This Week

The Hang Seng Index dropped by 325 points, or 1.2%, closing at 26,560 on Friday, as gains from the previous three trading sessions were reversed due to widespread sector declines. Market sentiment was dampened by Wall Street's third consecutive sell-off on Thursday, which underscored increasing worries that new AI advancements could negatively affect the profitability of software companies. In China, stock markets continued to weaken as investors exercised caution ahead of the upcoming January Consumer Price Index (CPI) data, with recent fluctuations in gold prices seen as a possible contributor to consumer inflation. Over the week, the Hang Seng Index fell by 3.0%, marking its first weekly decline in four weeks, as traders brace for reduced activity in Hong Kong and mainland markets in anticipation of the Lunar New Year holiday, which begins on February 15. Prominent decliners included Knowledge Atlas Tech, which fell 6.1%, AIA Group, down 5.2%, and Minimax Group, which decreased by 4.9%. Meituan dropped 2.2% following its agreement to acquire Dingdong Fresh, the China branch of Dingdong (Cayman), for $717 million, despite ongoing challenges in its core commerce sector and its resource-intensive international expansion.