Hang Seng Index: Top 3 reasons Hong Kong stocks are falling today

The Hang Seng Index retreated to 25,402 on Monday, falling from its monthly peak of 26,180 due to a confluence of geopolitical risks, sluggish Chinese economic data, and weakness in key corporate earnings. Geopolitical tensions escalated significantly following a US military strike in the Strait of Hormuz, sparking concerns over energy infrastructure disruptions and pushing Brent crude to $90 and WTI crude to $85 per barrel. Simultaneously, economic data from mainland China continued to signal economic weakness. China's manufacturing Purchasing Managers' Index (PMI) registered at 49.8 for August, staying below the critical 50.0 threshold separating expansion from contraction. This follows a second-quarter GDP expansion of just 4.3%, weighed down by persistent domestic demand weakness and an ongoing real estate crisis. Corporate earnings reports added further pressure to Hong Kong equities. Electric vehicle leader BYD slid nearly 5% following its quarterly earnings release, where it reported a 3% decline in revenue and warned of fierce domestic competition and rising input costs, dragging down broader market sentiment alongside solar and real estate stocks.