Hong Kong shares tumbled 507 points, or 2.2% to 22,774 in early trade on the first trading day of June, marking the second straight session of losses and hitting a three-week low. The selloff followed renewed U.S.-China trade tensions after Beijing today accused Washington of “seriously violating” a truce reached in May and vowed “strong and resolute measures” in response. This came after President Trump claimed Friday that China had “totally violated” the agreement, pointing to reduced rare earth exports. Meanwhile, U.S. futures slumped after Trump pledged to double steel tariffs to 50%, effective Wednesday. Economic data from China also weighed on sentiment, with May’s official PMI showing continued contraction in factory activity. All sectors dipped over 2%. Major decliners included Kuaishou Tech (-5.2%), China Resources Land (-4.3%), Meituan (-4.1%), and SMIC (-3.1%). Treasury Secretary Scott Bessent’s comments that the U.S. “will never default” helped limit further losses.