Hong Kong stocks declined Wednesday as investors reacted to renewed uncertainty surrounding US-China trade negotiations. Market sentiment was dampened by concerns that the ongoing discussions between the two economic powerhouses may not result in a favorable outcome.

The Hang Seng Index experienced a notable decrease, reflecting the cautious approach adopted by investors. Trade-sensitive stocks were particularly affected, bearing the brunt of the sell-off.

Analysts suggest that the market’s reaction underscores the significant impact of the trade dispute on investor confidence. The lack of a clear resolution continues to weigh on the outlook for Hong Kong’s economy, which is heavily reliant on trade with both the US and mainland China.

Further developments in the US-China trade talks will be closely monitored by market participants, as they seek clarity on the future direction of trade relations. Any signs of progress or setbacks are expected to trigger corresponding movements in Hong Kong’s stock market.