The Hong Kong Stock Exchange is currently experiencing its most extended period of decline in two months, with stocks falling for the fifth consecutive day. This downward trend is primarily fueled by escalating concerns surrounding the impact of trade tensions on the global economy.

Investors are closely monitoring the situation as fears of a potential trade war fallout continue to mount. The benchmark Hang Seng Index, a key indicator of the Hong Kong stock market, recorded a decline of 0.6% to 23,462.65 at the close of trading, following a cumulative loss of 3.2% since March 6. The Tech Index also experienced a notable retreat of 1.7%.

Across the mainland, both the CSI 300 Index and the Shanghai Composite Index saw decreases of 0.4%. Market performance was particularly harsh on certain companies, with sportswear brands like Anta Sports and Li Ning experiencing significant declines. E-commerce giant Alibaba Group Holding and short-video platform Kuaishou Technology also faced substantial losses.

Despite the overall negative trend, some companies managed to mitigate their losses. Smartphone and electric car manufacturer Xiaomi saw a modest increase of 1.5%, while BYD, another player in the electric vehicle sector, advanced by 1.6%. Zijin Mining Group also recorded a slight uptick of 1.2%.

However, not all companies were able to weather the storm. Developer Wharf Holdings suffered a significant drop of 4.7%, reaching HK$19.40, following a substantial intraday decline of 8.8%, the largest since November 2022. The company’s financial performance was also impacted, reporting a 22% year-on-year decrease in underlying profit for the year 2024.

The current market sentiment is further exacerbated by the geopolitical landscape, with US President Donald Trump’s announcement of potential retaliatory measures against the European Union’s response to new tariffs on steel and aluminum. These developments have heightened concerns about the risk of a global recession, adding to the existing unease among investors.

The Hong Kong Stock Exchange’s prolonged losing streak underscores the market’s vulnerability to external factors such as trade tensions and geopolitical uncertainties. As investors navigate these challenging conditions, the resilience and adaptability of companies in the face of economic headwinds will be crucial in determining future market outcomes.