New Year rally in Hong Kong stocks recedes as investors brace for China data



The rally that drove Hong Kong stocks to a strong start to 2026 continued to fizzle out on Thursday, with the benchmark falling for a second day as investors geared up for China economic data and digested the fallout of rising geopolitical tensions.

The Hang Seng Index fell 1.2 per cent to 26,139.27 as of 10.09am local time. The Hang Seng Tech Index dropped 1.1 per cent.

On the mainland, the CSI 300 Index slipped 0.3 per cent and the Shanghai Composite Index was little changed.

Personal computer maker Lenovo Group slumped 4.3 per cent to HK$8.90, and search engine operator Baidu slid 3.3 per cent to HK$140.40. Alibaba Group Holding retreated 1.2 per cent to HK$144.20, and Tencent Holdings shed 1.4 per cent to HK$616.

The gain in stocks that extended from a bull run in 2025 showed signs of fatigue, as the lack of fresh catalysts prompted investors to hold off on further bets. A slew of coming China economic data will test the sustainability of the rally, with traders needing more conviction from the fundamentals front.

Inflation data due on Friday may show that the streak of monthly declines in China’s producer prices continued in December, while the gain in consumer prices was subdued. Other figures including foreign trade, credit supply and foreign direct investment are scheduled to be released in the coming week.

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