Hong Kong stocks tumble as China factory report revives policy tightening concerns, tech stocks end March mayhem
- Hang Seng Index ended a three-day advance to cap a losing month as Chinese manufacturing report revived policy normalisation concerns
- Xiaomi gained after unveiling a multibillion plan to make electric cars, joining other China’s industry pacesetters for a slice of world’s biggest auto market
The Hang Seng Index halted a three-day gain with a 0.7 per cent setback to 28,378.35 at the close of trading on Wednesday, reversing an intraday gain of as much as 0.9 per cent. Pork processor WH Group and BOC Hong Kong Holdings led the index losers, each falling by at least 4.6 per cent.
Kweichow Moutai expects to boost its revenue by 10.5 per cent this year, it said in the annual report, versus 11 per cent recorded a year earlier.
“Onshore liquidity may tighten as economic data continues to improve,” said Stephen Innes, a strategist at AxiCorp. “March PMI will be the first leading indicator.”
Other major markets in Asia were mixed after benchmark 10-year Treasuries hit a 14-month high of 1.72 per cent on Wednesday. President Joe Biden is expected to roll out on Wednesday details on increased government spending to reduce inequality and strengthen infrastructure. A revamp of the tax code is also part of the plan.
The Hang Seng Index fell 2.1 per cent this month, breaking a five-month winning streak. The CSI 300 Index slumped 5.4 per cent after losing 0.3 per cent in February, capping its first back-to-back losses since March 2020.
On a quarterly basis, Hong Kong stocks were still up by 4.2 per cent, adding to a powerful 16 per cent surge for the preceding three-month period. The CSI 300 completed its first quarterly decline in a year with a loss of 3.1 per cent, after mounting a massive 41 per cent rally over the preceding three quarters.
Technology stocks ended the day little changed to finish March with an 8.6 per cent loss, the worst since the Hang Seng Tech reached its lowest in the same month last year.
On Wednesday, Xiaomi added 0.6 per cent to HK$25.75 after the Chinese smartphone maker said it will invest billions to make electric vehicles, joining a crowded field of players in the world’s biggest auto market.
Bairong dropped 16 per cent from its initial public offering price to HK$26.70 on the fintech company’s first day of trading in Hong Kong.
On the mainland, two debutants on Shanghai’s technology Star Market got off with a strong start. Anhui Yuanchen Environmental Protection Science and Technology jumped 161 per cent from the offer price to 16.95 yuan and Xiangyu Medical climbed 55 per cent to 44.80 yuan.