Hang Seng closes morning session down 126.97 points on China economic slowdown worries

Macro
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Summary · why it matters

The Hang Seng Index in Hong Kong closed the morning session down 126.97 points, or 0.49 percent, at 25,882.43 points, as investors took profits after six consecutive trading days of gains and fretted over China's economic recovery. The latest data from S&P Global showed China's manufacturing purchasing managers' index fell to 50.9 in July from 51.7 in June, while the manufacturing PMI from China's National Bureau of Statistics tumbled to 49.2 and the non-manufacturing PMI dropped to 49, below the 50 level that indicates contraction. China's gross domestic product in the second quarter of 2026 expanded just 4.3 percent year-on-year, the slowest growth rate in more than three years and below the lower end of the government's full-year target range of 4.5 to 5 percent.

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