Hong Kong stocks got off to a weak start in the new year, as investors remained wary about China’s growth outlook and the global economic landscape before president-elect Donald Trump returns to the White House.

The Hang Seng Index (HSI) fell 2.18%, the Hang Seng Tech Index (HSTECH) decreased 2.47%.

In terms of star stocks, SMIC fell 9%; XPeng fell 3.5%; JD.com fell 2.6%; Kuaishou fell 2%; Xiaomi fell 1.5%; Alibaba fell 1.3%; Tencent fell 0.2%.

The Caixin manufacturing purchasing managers’ index, a gauge of mostly smaller companies, fell to 50.5 in December from 51.5 a month earlier, according to a statement released by Caixin and S&P Global on Thursday. While the reading was above 50, indicating an expansion of activity, the figure fell short of the median forecast of 51.7 from economists tracked by Bloomberg.

Adding to the subdued mood is a shift in sentiment for US stocks, which ended 2024 with four consecutive days of declines. Investors have switched focus to the impact of potential tariffs and inflation-stoking policies from the incoming Trump administration from their initial excitement over fiscal support and tax cuts, according to analysts. The Federal Reserve has tempered expectations for monetary loosening, with the dot plot pencilling in only two rate cuts for this year.

“The pattern of rangebound trading is expected to continue,” Bocom International said in a report on Thursday. “A breakout will depend on whether China’s economic fundamentals will improve in a sustainable way and how the pace of rate cuts overseas will be.”