Hong Kong stocks tread water as investors weigh geopolitical risk from China-US tensions

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Hong Kong stocks traded sideways on Thursday, as investors kept a close watch on mounting tensions between China and the US and gauged how the evolving landscape would affect investment decisions.

The Hang Seng Index dropped 0.1 per cent to 25,888.51 at the close of choppy trading. The Hang Seng Tech Index fell 1.2 per cent.

On the mainland, the CSI 300 Index climbed 0.3 per cent and the Shanghai Composite Index advanced 0.1 per cent.

Smartphone and electric-vehicle maker Xiaomi slumped 3.6 per cent to HK$47.70 and Hong Kong developer Sun Hung Kai Properties lost 1.8 per cent to HK$93.55. Alibaba Group Holding slipped 0.3 per cent to HK$161.20 and Tencent Holdings shed 1.1 per cent to HK$620. Limiting the losses, Pop Mart International Group, the maker of blockbuster intellectual property toy Labubu, rallied 5.6 per cent to HK$288.20 after JPMorgan Chase updated the stock to overweight from neutral.

A Xiaomi vehicle on display. The electric-vehicle maker’s shares fell 3.6 per cent on Thursday. Photo: Xinhua

Stock traders have turned their attention to the flare-up of China-US tensions that have rattled global financial markets. US President Donald Trump said America was in a trade war with China, while Treasury Secretary Scott Bessent later struck a reconciliatory tone. Bessent floated the idea of an extension to the 90-day tariff truce with China, if Beijing held off on imposing restrictions on its exports of rare earths.