US Treasury yields rose to multi-year highs, coinciding with the suspension of northbound trading, causing the Hang Seng Index to fall 1% on Friday. Turnover was HK$102.2 billion, the lowest since February.
Vehicles pass in front of an electronic sign board showing the Hang Seng Index in Hong Kong.

The Hang Seng Index fell 251.04 points, or 1.01 per cent, to close at 24,510.09 on Friday (September 25), with main-board turnover totalling HK$102.203 billion. It was the first day of the mainland's Mid-Autumn Festival holiday, with Stock Connect trading suspended from September 25 to 27 and resuming on September 28. According to Sing Tao Daily, turnover was the lowest since February 16. The index has fallen for three consecutive sessions, losing a cumulative 577 points, or 2.3 per cent. February 16 was a half-day session on Lunar New Year's Eve, meaning Friday's turnover was virtually the lowest for a full trading day this year. Star Headline

First, a look at the timeline. The 10-year US Treasury yield recorded its biggest single-day rise since April 2025 on Wednesday (September 23). By the close of Hong Kong trading on Thursday (September 24), local stocks had already absorbed that move, with the Hang Seng Index falling 0.29 per cent to 24,761.13. The bigger moves came during US trading on Thursday: the 30-year yield briefly rose to about 5.5 per cent, its highest level since June 2004, while the 10-year yield climbed to about 5.22 per cent, its highest since June 2007. Those moves came after Hong Kong's market had closed, making Friday the first session in which local stocks had to digest them in full — without northbound trading. Share investors' worst fears come true as 30-year US Treasury yield surges above 5.5 per cent, highest since 2004 - Liberty Finance +2

The Hang Seng Index opened about 237 points lower and fell as much as 485 points during the day, touching an intraday low of 24,275, before narrowing its losses in the afternoon. It was still down 417 points, or 1.69 per cent, at the midday break, when turnover stood at HK$59.147 billion. The full-day loss was about 60 per cent of the decline recorded by midday. On.cc Star Headline

News of the China-US summit did not emerge only on Friday. US Treasury Secretary Scott Bessent announced on September 23 that the trade truce would be extended from November 10 to January 10, 2027, and said tariffs on non-sensitive goods worth a total of US$30 billion could be reduced. China announced an eight-point consensus on Thursday, including an agreement on reciprocal tariff reductions involving US$30 billion. This publication was unable to confirm whether the announcement was made before or after Hong Kong's 4pm market close. The US export list covers agricultural products, seafood, timber, cosmetics and medical equipment, while China's exports to the US include small household appliances, toys and child safety seats. According to a report carried by Yahoo Hong Kong, the US will announce details of the negotiations next Monday (September 28). US Treasury secretary: China and US agree to extend trade truce by two months to January 10 next year | TechNews

Wong Tak-ki, executive director of research at Futu Securities, said the market remained weak without support from northbound funds, while the surge in US long-term bond yields added to the pressure. Simon Wiersma, ING's chief investment strategist, said rising bond yields were increasingly becoming a major headwind for equities. On.cc Star Headline

The absence of northbound funds will continue. Stock Connect trading will be suspended again from October 1 to 7 and resume on October 8. The Hong Kong exchange will close for just one day, October 1. Of the eight Hong Kong trading days from September 25 to October 7, five — September 25 and October 2, 5, 6 and 7 — will have no Stock Connect trading. sse Heatalk