Hong Kong Stocks Rebound Amid Trade Tensions

Hong Kong stocks faced steep declines this week, marking their largest plunge since the 2008 crisis, triggered by the U.S.-China trade war. Despite this, mainland China's stock market showed resilience, backed by state purchases, as investors brace for the ongoing impact of U.S. tariffs.

Hong Kong stocks have experienced a significant downturn this week, charting their biggest setback since the global financial crisis of 2008. The decline is attributed to President Donald Trump's escalating trade war with China, which has particularly affected China's economy.

In contrast, stock markets in mainland China have been partially cushioned by strategic purchases from state-owned enterprises, resulting in more moderate declines. While a temporary rally occurred on Thursday, following Trump's decision to pause some tariffs, investors remain cautious as steep duties remain on Chinese goods.

The Hang Seng Index saw an early drop of 0.8% on Friday, nearing its lowest point in three months, contributing to a weekly loss of 9.7%. Meanwhile, efforts by Beijing to stabilize mainland markets include stock purchases by state entities and announced buybacks by various companies.

(With inputs from agencies.)