Hong Kong stocks tumbled this week, with the $HSI(HSI)$ dropping 3.97%, closing in on the key 25,000-point mark.Trade Tensions Back in PlayOn October 10, Donald Trump announced that starting November 1, the U.S. will impose an additional 100% tariff on Chinese imports — on top of existing duties. He also said the U.S. will restrict exports of “all critical software.”The news sent Hong Kong markets reeling. The Hang Seng Index plunged over 3.5% on Monday.After a global sell-off, Trump later tried to calm markets, saying “no need to worry about China — everything will be fine.” U.S. Treasury Secretary Bessent reaffirmed that the two heads of state are still expected to meet at the end of the month. Trade Representative Greer predicted that the market

This week, the Hong Kong stock market rallied for a fifth straight week, with the $HSI(HSI)$ up 2.09%.The big driver? A major breakthrough in U.S.-China trade talks. Top officials from both sides met in Geneva and reached meaningful consensus.Both countries agreed to slash tariffs. 91% of the so-called “emotional tariffs” were scrapped outright. Of the remaining 34% tariffs imposed post-“Liberation Day,” 24 percentage points are on a 90-day pause—only 10% remains.This means the current U.S. administration has cut its tariffs on China from 145% to just 30%. China’s tariffs on U.S. goods dropped from 125% to 10%.Markets loved it. The Hang Seng surged 3.4% on Monday.But then—something unexpected.Southbound Funds, which had been actively bottom-fishing