Hong Kong stocks declined on 2 June 2025, driven by fresh US-China trade war concerns, with investors shifting toward defensive assets. The Hang Seng Index fell 131 points (0.6%) to close at 23,157, while trading volume dropped to HK$145.2 billion (US$18.6 billion)—the lowest in nearly a month—largely due to a pause in northbound capital flow from the mainland.
Market Highlights:
- Opening low: Index opened 246 points down at 23,043
- Intra-day dip: Fell as low as 22,668 before recovering slightly
- China Enterprises Index: -0.9% to 8,359
- Technology Index: -0.7% to 5,134
Macau Casino Stocks Outperform:
Positive May gaming revenue data out of Macau, showing a 5% year-on-year rise to MOP 21.19 billion (US$2.63 billion), gave casino stocks a boost.
Macau Big Six Share Prices (HKD) as of 10:55am, 03/06/2025:
- Sands China: 15.78 (+4.3%)
- Wynn Macau: 5.35
- MGM China: 11.12
- Melco: 3.31
- Galaxy Entertainment: 33.60
- SJM: 2.35
In contrast, real estate stocks dragged the market, with Longfor tumbling 5.1%, while Mixue Bingcheng gained 7.5% following an upgraded target price.
Global Backdrop:
The U.S. decision to double tariffs on imported steel and aluminium (from 25% to 50%) starting 4 June has spurred caution in global markets. Demand for safe-haven assets rose:
- Gold surpassed US$3,340/oz
- Tongguan Gold surged 18%
- Crypto-related stocks like OKG Technology and Xinhua Technology also rallied
Analyst Outlook:
- If Hang Seng fails to break 23,083, a retest of 22,000 is likely
- Potential support could come from China’s domestic stimulus, including trade-in subsidies and accelerated bond issuance
While trade tensions cast a shadow, Macau’s strong tourism and gaming performance is giving selective sectors—particularly gaming—a meaningful boost.
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