Hong Kong stocks trim weekly rally as market wraps up fourth year of losses

The Hang Seng Index dropped 0.5 per cent to 17,000.75 at 10.35am, trimming this week’s advance to 4 per cent. The Tech Index lost 0.4 per cent, while the Shanghai Composite Index added 0.4 per cent.

HSBC retreated 0.2 per cent to HK$63 while bourse operator Hong Kong Exchanges and Clearing weakened 1.3 per cent to HK$264.20. Smartphone maker Xiaomi fell 4.1 per cent to HK$15.62 and China’s biggest chip maker SMIC slipped 2.8 per cent to HK$19.64.

Limiting losses, Tencent climbed 0.5 per cent to HK$294.40 and Baidu gained 1.3 per cent to HK$116.40, while BYD advanced 0.5 per cent to HK$214.60.

The Hang Seng Index, comprising 82 members, has fallen about 14 per cent, making it the worst among major stock indices worldwide. The city’s broader stock market lost US$523 billion of market value this year. The top three losers, Li Ning, Country Garden Services Holding and Zhongsheng Group, lost 53 to 69 per cent this year.

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“Hong Kong’s role as an Asian financial powerhouse seems increasingly at risk,” said Brock Silvers, managing director at Kaiyuan Capital in Hong Kong. Struggles among Chinese developers and local governments, along with investability and geopolitical concerns, are likely to overwhelm any cyclical gains next year.”

Elsewhere, two stocks debuted on Friday. UBTech Robotics rose 0.1 per cent to HK$90.10 in Hong Kong, while Dalian Dalicap Technology surged 215 per cent to 28.05 yuan in Shenzhen.

Asian markets were mixed on Friday. Japan’s Nikkei 225 lost 0.2 per cent, the S&P/ASX 200 Index in Australia declined 0.3 per cent and South Korea’s Kospi Index rallied 1.6 per cent.