Hong Kong Stocks Retreat Amid Outflows; Beijing Shougang LanzaTech Soars in Debut
Hong Kong stocks retreated Wednesday as outflows from the city to mainland exchanges weighed on investor sentiment.The Hang Seng Index fell by around 405.11 points, or 1.6%, to end at 25,633.21, while the Hang Seng China Enterprises Index decreased by 166.38 points, or 1.9%, to close at 8,596.59.Goldman Sachs Group on Wednesday downgraded its rating on H shares to market-weight, citing the Hong Kong market's four-month underperformance against onshore peers, Bloomberg News reported.The downgrade came amid a broad sell-off from mainland investors who appeared to be investing in semiconductors and other AI-linked shares in China.Mainland-listed ETFs that invest in Hong Kong equities pulled 25 billion yuan from the city's market last week, the largest weekly outflow on record and a reversal from last year's steady inflows, according to Bloomberg data.Meanwhile, the U.S. proposed additional taxes on imports from 60 economies, including China and Hong Kong, over forced-labor trade practices, the Office of the U.S. Trade Representative said.The USTR has proposed a 10% additional tariff for economies that have partially enforced bans on the importation of certain forced labor goods, and a 12.5% tariff for all others, according to the release from the office.In corporate news, Chinese carbon capture firm Beijing Shougang LanzaTech Technology (HKG:2553) soared in its Hong Kong debut. The firm's shares closed at HK$21.06, 44% above the offer price of HK$14.60.
