China, HK benchmarks slip as gold stocks fall on US rate hike

According to Business Recorder, China and Hong Kong stock benchmarks were lower by the lunch break on Thursday, with rate-sensitive groups under pressure after the US Federal Reserve lifted interest rates a day earlier. The blue-chip CSI300 and the Shanghai Composite each dropped 0.4%, while the Hang Seng in Hong Kong fell 0.8%. The Fed also signalled additional hikes over the months ahead, a stance more hawkish than markets had anticipated.

CSI gold equities in mainland China slid 5%, non-ferrous metal shares lost 3%, and Hong Kong property firms declined 1.9%. Hong Kong increased its base rate to 4.25% on Thursday, a rise of 25 basis points in step with the Fed. Biotech and chip stocks, by contrast, held up better in both markets.

Analysts quoted in the report favour China A-shares over Hong Kong shares, citing a larger stake in AI hardware and its supply network. They also said leading Hong Kong internet companies are consumer-facing, which leaves the city's stocks more exposed to weak domestic consumption. Kevin Liu of CICC said a durable Hong Kong rebound would need a push from fiscal stimulus or a 'DeepSeek moment'.