Hong Kong equities closed lower on Monday as investors digested softer fourth-quarter growth in mainland China and weighed renewed geopolitical risks after the U.S. signalled possible new tariffs on Europe.
The Hang Seng Index fell 281.06 points, or 1.1%, to close at 26,563.90, while the Hang Seng China Enterprises Index dropped 86.36 points, or 0.9%, to 9,134.45.
China's gross domestic product expanded 4.5% in the fourth quarter of 2025, easing from 4.8% growth in the prior quarter but coming in slightly above the 4.4% forecast in a Reuters poll.
For the full year, the economy expanded 5%, meeting the government's annual growth target.
Meanwhile, U.S. President Donald Trump on Saturday vowed to impose a fresh round of escalating tariffs on European allies due to their opposition to his proposed takeover of Greenland.
In a post on Truth Social, Trump said additional 10% import tariffs would take effect from Feb. 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland, and Great Britain.
In corporate news, Pak Tak International (HKG:2668) advanced 39% after signing a memorandum of understanding to explore a possible acquisition of a partial or full equity interest in a Tanzania-based gold company.
GOME Retail (HKG:0493) closed nearly 27% higher after saying it plans to issue more than 25 billion shares to settle outstanding payables of about 336.8 million yuan.
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