Hong Kong stocks slip, set for monthly loss, as manufacturing in China shrinks

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Hong Kong stocks fell for a fifth day, set for the longest monthly losing streak in a year. A government report showed Chinese manufacturing contracted more than expected this month, prompting investors to trim their positions.

The Hang Seng Index fell 0.3 per cent to a 12-month low of 16,942.81 at 10.20am local time. The Tech Index dropped 1 per cent and the Shanghai Composite Index was little changed.

Alibaba Group slipped 0.8 per cent to HK$72.10 and e-commerce rival JD.com lost 0.7 per cent to HK$105.90. Alibaba Health dropped 3.9 per cent to HK$4.44 while HSBC weakened 0.8 per cent to HK$59.05 and China Merchants Bank dropped 0.5 per cent to HK$27.20. EV maker Xpeng lost 3.4 per cent to HK$65.35.

The Hang Seng Index has declined almost 1 per cent this month, extending a cumulative 15 per cent slide in the preceding three losing months, capping a HK$579 billion (US$74 billion) market sell-off. The last time the city’s benchmark fell in four straight months was in July to October 2022.

China’s official PMI manufacturing index dropped to 49.4 from 49.5 in October, the statistics bureau said on Thursday, versus market expectations of 49.8. A reading below 50 indicates a contraction in activity.

“The overall sense is that the economy faces greater downside risks,” said Caroline Yu Maurer, head of China and Hong Kong equities at HSBC Asset Management. The outlook remains gloomy and confidence is definitely lacking in the short term, she added.

Hong Kong Exchange Fund rebounds from record loss with US$14.22 billion return

China’s shrinking exports, weaker factory activity and worsening deflation have eroded investors’ confidence in its recovery momentum Foreign investors have sold a record 182 billion yuan (US$25.7 billion) of onshore stocks since end-July, according to Stock Connect data.
November’s biggest losers include food delivery platform operator Meituan, which plunged 18 per cent after warning about a slowdown in demand. EV maker BYD tumbled 12 per cent on price-war concerns, while Alibaba lost 9.6 per cent this month after it scrapped a key part of its business reorganisation.

Elsewhere, Machinery Technology Development surged 210 per cent to 25 yuan on its first day of trading in Beijing.

Asian markets mostly traded lower on Thursday. Japan’s Nikkei 225 and Australia’s S&P/ASX 200 both declined 0.1 per cent, while South Korea’s Kospi was little changed.

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