Hong Kong equities lost 50 points or 0.2% to 24,851 on Wednesday morning deals, snapping a two-day winning streak amid weakness in tech, consumer, and financial sectors. Sentiment soured after Wall Street closed lower overnight, as weak U.S. data underscored the economic toll of tariffs on activity and earnings. Risk appetite was further hit by reports that two Chinese nationals were arrested in California for allegedly smuggling AI chips, including Nvidia H100s, to China. Caution also prevailed ahead of China’s July trade data and inflation reports, with concerns lingering over the impact of heightened trade barriers and ongoing deflation risks. However, further losses were limited after U.S. President Trump said Washington and Beijing are “very close” to extending their trade truce, set to expire on August 12. Among notable decliners were Li Auto (-3.5%), CSPC Pharmaceutical (-2.9%), Meituan (-2.0%), and MGM China (-1.3%). In contrast, Wuling Motors jumped 7.7% on H1 profit outlook.