Hang Seng Index advances as Anta Sports rallies while market awaits Fed decision on interest rates
- Hang Seng Index snapped two days of losses as Anta Sports continued to rebound from a sell-off triggered by insider selling
- Meituan slid on antitrust probe as TMT stocks ‘face a major headwind’, Xiaomi slumped as worsening pandemic undermines phone sale outlook in India
The Hang Seng Index advanced 0.5 per cent to 29,071.34 at the close of Wednesday trading, halting a two-day decline. The Shanghai Composite Index rose 0.4 per cent to 3,441.10, after swinging between gains and losses for more than 10 times during the session.
“The market doesn’t have a [clear] direction,” said Willer Chen, analyst at Forsyth Barr Asia in Hong Kong. “In the short term, people are looking at the Federal Open Market Committee meeting, while individual stocks are driven by earnings.”
Anta Sports jumped 4 per cent to HK$141.70 as southbound capital flocked to buying it in the past two trading days. Mainland investors spent HK$216.1 million on Monday and HK$60 million in purchasing the stock.
The probe shows China’s regulatory crackdown is extending beyond Alibaba Group Holding (the owner of this newspaper), and that technology, media and telco stocks that powered the rally from March 2020 to February 2021 “now face major headwinds,” according to BCA Research.
Xiaomi slumped 3.8 per cent to HK$25.30 amid worsening the Covid-19 pandemic in India, where it has the biggest market share. Xiaomi’s phone business topped the market with 26 per cent shipment in 2020 according to Counterpoint Research.
Markets in Asia-Pacific region were mixed. Stock benchmarks in Australia and Japan added by 0.4 per cent and 0.2 per cent respectively, while the Kospi in South Korea slid 1.1 per cent.
Shenzhen Rayitek Hi-tech Film, which produces polyamide films for use in electronic products, more than quadrupled when its shares began trading in Shanghai at 27.12 yuan. Shenzhen Xinyichang Technology, a maker of semiconductor devices, tripled to 65.50 yuan in Shanghai. Dongrui Food Group, a meat processor and abattoir operator in the Guangdong province, advanced 44 per cent to 91.27 yuan in Shenzhen.