Hong Kong Stocks Drop on Rising China-Japan Tensions

Market Express

01/07

Hong Kong stocks’ solid start to 2026 stumbled on Wednesday, with the benchmark gauge retreating from a seven-week high as geopolitical tensions intensified after China imposed new sanctions against Japan.

The Hang Seng Index fell 1.4%, while the Hang Seng Tech Index dropped 2.2%.

In terms of star stocks, Alibaba fell 5%; BYD, NIO, and Bilibili fell 4%; Kuaishou and Meituan fell 3%; NetEase, Tencent, SMIC, Xiaomi, JD.com, and Li Auto fell 2%.

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