Hong Kong stocks fell on Wednesday as sentiment soured due to the uncertainty surrounding China's trade spat with the US.
The Hang Seng Index slid 0.93%, or 192.87 points, to close at 20,597.09. The Hang Seng China Enterprises Index retreated 1.01%, or 77.36 points, to finish at 7,566.27.
Chinese e-commerce firms are facing the brunt of the US removing duty-free status, or de minimis exemption, for goods valued under $800, subjecting them to tariffs instead, Forbes reported.
The move is part of the levy of 10% duties on Chinese goods by the Trump-led US government, which went into effect Tuesday.
That, paired with a temporary suspension of inbound packages from Hong Kong and China by the US Postal Service, is expected to impact logistics firms in the region, according to an SCMP report.
Investors await a call between US and Chinese leaders regarding the tariffs, hoping a discussion on the way forward will reduce uncertainty about the market's future.
In other news, the S&P Global Hong Kong SAR Purchasing Manager's Index slipped to 51 in January from 51.1 in December 2024. The figure marked the lowest print since September 2024.
In corporate news, shares of Sino-Ocean Group (HKG:3377) ended 6% lower after the property developer said it received approval from a UK court to restructure $6 billion worth of debt.
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