Hong Kong equities fell on Wednesday, with the Hang Seng Index slipping 259 points, or 1.0%, to 25,390 as fading hopes for a U.S.-Iran deal and caution ahead of the latest U.S. inflation data weakened risk appetite. Oil prices climbed to a one-week high as tensions around the Strait of Hormuz raised concerns about inflation and global growth, while losses on Wall Street added to the cautious mood. Technology shares in Hong Kong remained under pressure, with investors watching Tencent's second-quarter earnings for signs of growth in gaming, advertising and AI investments. Market attention also stayed on plans to expand the Hang Seng Tech Index from 30 to 50 constituents, a move that could increase exposure to sectors such as AI and robotics. Hong Kong's IPO market remained a bright spot, with Shein reportedly preparing to launch a Hong Kong listing, supporting optimism about the city's capital-market activity. Tencent fell 2.3%, Meituan lost 2.3%, Kuaishou dropped 1.6%, while AIA and Lenovo each slipped 0.6%.