Hang Seng slips as US-Iran tensions, weak China data weigh

The Hang Seng Index fell to 25,402 on Monday, down from this month’s high of 26,180, after a US strike in the Strait of Hormuz and weaker Chinese activity data.

CENTCOM reported the US attack killed two people who were laying mines. President Donald Trump warned he could target Kharg Island, a major Iranian oil export hub. Brent crude traded near $90 a barrel and West Texas Intermediate around $85.

China’s manufacturing PMI for August was 49.8, up from July’s 49.2 but below the 50 threshold that separates expansion from contraction. Quarterly GDP growth was 4.3% in the second quarter, the slowest pace since late 2022. Retail sales and industrial production also showed slower growth in recent data.

BYD reported quarterly net profit of about $1.2 billion, up roughly 30% year‑on‑year, while revenue fell about 3%. BYD warned the domestic electric-vehicle market is facing sluggish demand, stronger competition and rising raw-material costs. BYD shares fell nearly 5% after the results. Other notable decliners on the Hang Seng included China Resources Land, Chow Tai Fook Jewellery and Longfor Group. Xinyi Solar slid after releasing a weak financial update over the weekend.

Iran warned it would target other energy infrastructure if attacks escalate. Previous threats against Kharg Island were later scaled back following pushback from regional partners. No new policy stimulus package from Beijing has been announced, and commentators have suggested the weaker Chinese numbers could prompt consideration of additional support measures, though authorities have not confirmed any plans.