Hong Kong shares dropped 371 points, or 1.4%, to 25,258 Tuesday morning’s session, extending steep losses from the prior day as all sectors retreated. Risk appetite was pressured by declines in mainland markets after weak November data showed fragile industrial output and retail turnover amid soft external demand and shaky domestic conditions. Local equities neared their lowest in a week, following a negative lead from Wall Street, where AI and tech weakness persisted. Losses were partly offset by domestic data showing Hong Kong’s manufacturing output rose for a fourth straight quarter in Q3 2025, the strongest growth in nearly three years. Hedge funds also added to U.S. equity positions for a sixth consecutive week. On the corporate front, China Vanke said it would convene a second bondholder meeting after failing to secure approval to extend by one year a bond payment due Monday. Early laggards included XPeng (-3.2%), SenseTime (-2.8%), Xiaomi (-1.8%), and Kunlun Energy (-1.3%).
