HK Stock Market Watch: Gold Mining Stocks Plummet Amid Treasury Debt Buyback Plans

The Hong Kong stock market saw significant losses in gold mining stocks on Tuesday. Spot gold initially surged, rising to nearly $4,700 per ounce during intraday trading before plummeting and turning negative, falling below $4,630 per ounce.

Lingbao Gold (03330) led the decline, dropping over 7% to HK$22.90, while Chifeng Gold (06693) fell nearly 6% to HK$40.92. Other gold mining stocks also saw significant declines, including Shandong Gold (01787), which declined 5.08% to HK$25.42, and Zijin Mining (02899), which decreased 3.85% to HK$36.96.

The losses in gold mining stocks came as a result of reports that the U.S. Treasury is considering utilizing funds from its General Account (TGA) to finance the recently expanded U.S. debt buyback program, totaling nearly $1 trillion. This news briefly pushed down yields on 10-year and 30-year U.S. Treasuries.