Hong Kong stocks fell 223 points, or 0.8%, to 27,067 on Friday morning, ending a three-session winning streak and retreating from a four-year high. Profit-taking weighed on all sectors, while caution grew amid a second day of the U.S. government shutdown Thursday. Markets expect the closure to last at least until next week, potentially delaying key economic data such as the monthly jobs report. Meanwhile, mainland markets remained closed for Golden Week. Major decliners included EV stocks XPeng (-4.4%), Li Auto (-3.7%), and Geely Auto (-1.7%), alongside Kuaishou Tech (-4.1%), Mixue Group (-3.0%), and Zhaojin Mining Industry (-2.1%). Despite Friday’s drop, markets are set for a robust weekly gain, up about 3.7% so far, lifted by recent Wall Street record highs, hopes for further Fed rate cuts, and the PBoC’s pledge to coordinate fiscal policy to boost China's economic growth. On the data front, Hong Kong retail sales rose 3.2% yoy in August, the strongest pace since December 2023.