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Hong Kong stocks slump, Tech index hits lowest since November 2022, as traders brace for more weak China reports
The Hang Seng Index fell 1.9 per cent to 16,218.60 at 11.22am local time. The benchmark tumbled 3 per cent last week, the weakest opening week in 19 years. The Tech Index tumbled 3.1 per cent to the lowest level since late November 2022, while the Shanghai Composite Index slipped 1 per cent.
Alibaba Group fell 2.5per cent to HK$69.85 and e-commerce peer JD.com slipped 4.5 per cent to HK$100.60. Tencent lost 2.1 per cent to HK$286, while online-gaming peer NetEase retreated 3.4 per cent to HK$141.20. EV maker BYD slipped 2.3 per cent to HK$203.40 and rival Li Auto dropped 2.2 per cent to HK$131.90 and Meituan weakened 4 per cent to HK$74.60.
China’s economy continued to struggle through the end of last year as deflation persisted. Consumer prices probably dropped 0.4 per cent in December from a year earlier, after a 0.5 per cent fall in November, according to forecasts before an official report on January 12. Other economic report on the same day may show both imports and exports growth slowed in December, according to Goldman Sachs.
“The significant pullback in the first week of the year has dented the sentiment,” Kevin Liu, a strategist at CICC Research, said in a report on Sunday. “Further policy support is still the key to reversing the current situation in the Hong Kong stock market. Otherwise even if the US Federal Reserve cuts interest rates, any rebound is likely to be short-lived.”
Singapore hedge fund eyes ‘big upside’ in Chinese stocks after four-year slump
Singapore hedge fund eyes ‘big upside’ in Chinese stocks after four-year slump
The Federal Reserve will hold its first policy meeting on January 30 and 31. Policy makers raised borrowing costs 11 times totalling 525 basis points since the March 2022 lift-off.
Foreign funds were net sellers of 5.5 billion yuan (US$770 million) of mainland stocks last week, adding to a sell-off over the past five straight months, according to Stock Connect data.
Major Asian equity markets traded higher. South Korea’s Kospi and Japan’s Nikkei 225 both gained 0.3 per cent, while Australia’s S&P/ASX 200 added 0.1 per cent.
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