The Hang Seng fell 281 points, or 1.0%, to close at 26,564 on Monday, extending losses to a third session as broad declines weighed on sentiment. Pressure mounted after U.S. futures tumbled on President Trump’s threat to impose tariffs on several European countries, starting at 10% on February 1 and rising to 25% by June 1, if they resist his bid to buy Greenland. Major EU members denounced the move as blackmail, while France floated unprecedented countermeasures. In China, Q4 GDP growth slowed to a three-year low on weak domestic demand. Though full-year growth met Beijing’s 5% target, trade frictions and structural imbalances cloud the outlook. Tech shares led losses, with SMIC down 2.7%, Kuaishou off 2.2%, and Xiaomi 1.6% lower. Pharma stocks also slumped, including Sino Biopharma (-6.0%), Hansoh (-4.1%), and Akeso (-3.3%). Investors now await the PBoC’s loan prime rate decision on Tuesday, after key lending rates stayed at record lows for a seventh straight month in December.
