Hong Kong shares fell 98 points or 0.4% in Tuesday morning trade, hovering near 26,349 after modest gains in the prior session amid weakness in property and financials. Traders cautiously weighed news that the U.S. and China reached an agreement to place TikTok under US ownership, with final approval expected during a Friday call between President Trump and President Xi Jinping. At the same time, Beijing condemned a U.S. proposal urging allies, including the EU and G7, to impose tariffs of 50%–100% on Chinese goods. Losses were capped by fresh data showing Hong Kong’s manufacturing output grew 0.9% in Q2, up for the third quarter. Focus now turns to the Fed’s two-day policy meeting, with markets expecting a 25bps cut and more easing this year, as Trump continues to push for a larger move. Yunfeng Financial sank 15% on a discounted share sale. Other major laggards included China Hongqiao Group (-4.1%), JD Health Intl. (-2.9%), China Overseas Land (-2.4%), and Horizon Robotics (-1.8%).