Amid escalating concerns over the impact of trade wars on the global economy, the Hong Kong Stock Exchange has been grappling with a prolonged downturn, marking its lengthiest losing streak in two months. Investors are on edge as fears of fallout from trade disputes continue to mount, leading to a fifth consecutive day of decline in Hong Kong stocks.

The benchmark Hang Seng Index closed down by 0.6 percent at 23,462.65, reflecting a cumulative loss of 3.2 percent since March 6. The Tech Index also experienced a notable decline of 1.7 percent. Across the border, both the CSI 300 Index and the Shanghai Composite Index in mainland China witnessed a 0.4 percent drop, mirroring the subdued sentiment in the region.

During the trading session, notable companies in the market faced downward pressure. Sportswear giant Anta Sports saw a significant decline of 3.4 percent, with its stock price falling to HK$94.85, while its competitor Li Ning retreated by 2.8 percent to HK$17.24. E-commerce behemoth Alibaba Group Holding registered a 2.5 percent drop, closing at HK$131.50, while short-video platform Kuaishou Technology plunged by 3.9 percent to HK$63.30.

Despite the prevailing negative sentiment, some companies managed to mitigate their losses. Smartphone and electric car manufacturer Xiaomi recorded a 1.5 percent increase, reaching HK$52.85, while BYD, another player in the electric vehicle sector, advanced by 1.6 percent to HK$360.80. Zijin Mining Group also saw a modest gain of 1.2 percent, closing at HK$16.28.

However, not all companies fared well in the market turmoil. Developer Wharf Holdings experienced a significant slump of 4.7 percent, closing at HK$19.40 after witnessing an intraday decline of up to 8.8 percent, the most substantial drop since November 2022. The company reported a 22 percent year-on-year decrease in underlying profit, amounting to HK$2.8 billion for the year 2024.

The prevailing market unease was further fueled by escalating trade tensions on the global front. US President Donald Trump’s announcement of retaliatory measures against the European Union’s response to new tariffs on steel and aluminum heightened fears of a looming recession on a global scale.

As the Hong Kong Stock Exchange navigates through this challenging period, market participants are closely monitoring developments in the trade landscape and their potential ramifications on the financial markets. The prolonged losing streak underscores the delicate balance between economic forces and geopolitical uncertainties, emphasizing the need for a cautious and vigilant approach in the current volatile market environment.