Hong Kong, January 30, 2026, 16:47 HKT
- Hong Kong stocks kicked off Friday in the red, dragged down by declines in major tech and financial shares.
- The Hang Seng extended its slide as traders cashed in gains following a multi-year peak.
- China’s official factory survey, out this Saturday, has investors on edge as global tech shares face new pressure.
Hong Kong shares kicked off Friday in the red, led by losses in major tech stocks. The Hang Seng Index dropped 182 points, or 0.65%, settling at 27,785. Alibaba slipped 1.9%, Tencent lost 1.1%, and the Hang Seng Tech Index declined 0.88%. (Dimsum Daily)
The selloff accelerated early on, with the benchmark dropping 412 points, or 1.5%, to 27,545, ending a seven-session winning streak. After hitting a 4-1/2-year high just a day ago, traders moved to lock in profits. Still, the index managed to climb nearly 8% for the month and is on track for its first monthly gain in four months, according to Trading Economics data on TradingView. (TradingView)
All eyes are now on China’s official purchasing managers’ index (PMI) set for release Saturday. This key gauge of factory output signals expansion when above 50. A Reuters survey of 25 economists predicts the headline PMI will hold steady at 50.0 in January, down slightly from December’s 50.1. Mizuho Securities pointed to the Lunar New Year timing as a likely influence on production trends. (Reuters)
Materials took the hardest hit, as a Reuters market update on MarketScreener revealed the Hang Seng Materials Index poised to drop over 3% at the open. (MarketScreener)
Global tech concerns added to the sentiment. Apple flagged rising memory chip costs were already eating into this quarter’s profits, with CEO Tim Cook saying memory prices are “increasing significantly.” Chipmakers are shifting production toward higher-margin chips for AI systems, Reuters reported. (Reuters)
Property-linked optimism has helped push this month’s gains, following reports that China has scrapped its “three red lines” borrowing limits for developers — the debt caps rolled out in 2020 — and will let some project loans be extended by up to five years, two sources told Reuters. “Developers have ‘abandoned the debt-driven expansion model,’” said Liu Shui, an analyst at China Index Holdings. Citi, however, noted the policy change probably won’t unleash a wave of new funding, since many private builders remain in restructuring. (Reuters)
But the mood heading into month-end feels fragile. A weaker China PMI reading, another drop in U.S. tech stocks, or skepticism over whether looser property regulations actually spark credit growth could swiftly reverse gains that have already attracted quick-fire money.
