The Hang Seng fell 112 points, or 0.6%, to close at 19,753 on Thursday after an upbeat session the previous day, dragged down by broad-based declines across sectors.

Investors held off on entering fresh positions after the U.S. Fed cut borrowing costs for the third time this year but warned it would slow the pace of interest rate cuts next year. Meanwhile, cautious traders awaited China's key monthly lending rate decision on Friday after it hit a record low in November.

The market pared early losses, however, on a report that battery maker CATL is considering a second listing in Hong Kong to raise $5 billion, potentially the city's biggest public offering since early 2021. Separately, meaningful fiscal measures by 2025 from Beijing are expected to help the Chinese economy. Sunac China Hlds.

slumped 2.5%, as the property builder began arbitration proceedings against Wanda Group. Other companies that fell included WH Group Ltd. (-3.8%), Trip.com (-3.1%), Henderson Land Dev. (-2.9%), and MTR Corp. (-2.6%).

Source: Trading Economics