Hong Kong stocks fell amid lower expectations for interest-rate cuts by the Federal Reserve and a tight US presidential election that will determine the future of its relationship with China.

On October 24, 2024, the Hong Kong stock market experienced a significant decline. The Hang Seng Index (HSI) fell by 1.30%, the Hang Seng Tech Index (HSTECH) plummeted by 2.64%.

Among individual stocks, Kingdee International saw a significant drop of 6.75%. Xinyi Solar also fell sharply by 5.53%, following a report from JPMorgan suggesting caution before the third-quarter earnings release. China Cinda declined by 4.90%, and Bilibili-W dropped by 4.96%. New Oriental-S plummeted by 6.49% after releasing its latest quarterly earnings, which showed a 30.5% year-over-year increase in net revenue but also highlighted slowing growth in certain segments.

In the lithium sector, Ganfeng Lithium fell by 4.21%, and Tianqi Lithium dropped by 4.21%. The sector faced pressure due to increased production and a relatively loose supply-demand balance, with no immediate price reversal expected.

Other notable stocks included Meituan-W fell 4.1%, BABA-W fell 3.2%, SMIC fell 2.2%, TENCENT fell 1.5%, HORIZONROBOT-W rose 2.8%.

“Market sentiment in both Hong Kong and the mainland turned weak as some investors decided to lock up gains over the past two days by reducing their holdings,” said Ivan Li, a fund manager at Loyal Wealth Management in Shanghai. “The market outlook remains cloudy since most investors are cautious on equity investment before China unveils a strong stimulus package to buoy the slowing economy and the embattled property sector.”

In addition, as the world is waiting for the fast-approaching US election, Beijing may be holding onto new policy measures until after the election result, according to Dickie Wong, executive director at Kingston Securities.