It appears that Hong Kong stocks experienced a fallen for a second day in a row, reaching a two-month low. The lack of progress on the US debt ceiling talks has been a significant factor weighing on market sentiment. The Hang Seng Index decrease 1.6 percent to 19,115.93 on Wednesday, marking the largest decrease in a week and bringing the benchmark to its lowest level since March 20. The Tech Index saw a 2 percent decline, while the Shanghai Composite Index lost 1.3 percent.
The stock values of a few particular businesses also dropped. Lenovo, Xiaomi, and Xpeng all outperformed their predictions. Following news that its cloud division would let go 7 percent of its workforce, Alibaba Group Holding saw its share price fall 2.3 percent to HK$81.05. The dominant search engine Baidu had a 2.5 percent decline to HK$119.10, while Meituan saw a 1.8 percent decline to HK$130.40. Longfor Group, a developer, had a major drop of 7.9 percent to HK$16.14, while Sands China, a casino operator, fell 5.4 percent to HK$24.75.
The continuing debt ceiling talks between the White House and Republicans have not shown meaningful progress, leaving traders concerned as the deadline for potential default approaches. Treasury Secretary Janet Yellen cautioned that the US could face difficulties paying its bills as early as June 1. This uncertainty surrounding the US debt ceiling crisis has contributed to the negative market sentiment in Hong Kong.
