Hong Kong's Three Major Indices Slide for Third Straight Day; Property, Auto, and Airline Sectors Tumble

On May 18, Hong Kong’s three major stock indices declined for the third consecutive trading day. The Hang Seng Index closed at 25,675 points, down 1.11%; the Hang Seng China Enterprises Index fell 1.07%; and the Hang Seng Tech Index dropped sharply by 1.95%. Market sentiment remained under pressure, primarily due to surging U.S. Treasury yields and a global pullback in risk assets. Across sectors, heavyweight tech stocks broadly declined, with Tencent down 1.58%, JD.com falling 1%, and Baidu, Meituan, and Alibaba all posting losses. Property stocks slumped collectively as April real estate investment data came in far below expectations, led by China Jinmao and R&F Properties. Auto stocks plunged significantly amid aggressive price cuts in the fuel-powered vehicle market and a year-over-year decline of over 20% in April passenger vehicle retail sales; Li Auto tumbled more than 14%. Airline shares extended their losses, mainly due to a 75% month-on-month increase in April jet fuel ex-factory prices, with analysts noting that higher ticket prices are unlikely to offset rising costs. Additionally, expectations of persistently high interest rates triggered a sell-off in precious metals, with Tongguan Gold among the worst performers. Multiple sectors—including high-speed rail infrastructure, restaurants, biopharma, defense, and shipping—also moved lower in tandem. In contrast, GigaDevice rose against the trend, hitting a record high.