The Hang Seng Index fell 156 points, or 0.7%, to close at 23,769 on Monday, recovering from an intraday slump of nearly 2% but extending losses for a fourth consecutive session. Sentiment improved after the first round of talks between the US and Iran in Switzerland eased. However, investors remained cautious over the prospect of US interest rates staying higher for longer following the Federal Reserve's recent hawkish signals. Hong Kong shares also faced pressure from concerns over upcoming lock-up expirations following the city's IPO boom, with Goldman Sachs estimating that about $274 billion worth of restricted shares could enter the market over the next 12 months. Consumer and retail stocks led the decline, while gains in select financial and technology shares helped the benchmark pare earlier losses. Among major laggards, Tencent (-1.5%), Xiaomi (-3.8%), and Lenovo (-1.8%) declined. In contrast, SMIC (3.1%), Knowledge Atlas (15.1%), and Kingboard Laminates (11.4%) advanced.