Hong Kong stocks pare gains as China’s liquidity injection fails to inspire while crypto-linked firms sink on crackdown
- Hang Seng Index lost almost all its advance with no sign of resolution to Evergrande’s debt crisis while crypto-linked stocks slumped
- CNOOC jumped on a plan to raise US$5.4 billion from onshore stock offering
The Hang Seng Index was little changed at 24,208.78 at the close of Monday trading, after advancing as much as 1 per cent. The Hang Seng Tech Index fell 0.9 per cent to the lowest level since August 23. The Shanghai Composite Index declined 0.8 per cent.
The People’s Bank of China pumped 100 billion yuan (US$15.5 billion) into the local banking system through open market operations on Monday, supplementing net liquidity injection of 510 billion yuan in the preceding six days.
Earlier gains were just a technical rebound while sentiment is “still bad”, said Castor Pang, head of research at Core Pacific-Yamaichi in Hong Kong. Traders are waiting for more data to gauge the economic slowdown, he added.
Also tempering gains, some major industrial groups slumped on concerns power cuts in several mainland provinces will dent operations. Aluminum Corporation of China fell by 10 per cent in Shanghai and 6.3 per cent in Hong Kong.
Cryptocurrency volatility highlighted by China’s recent crackdown and Elon Musk comments
In mainland markets, liquor distiller Kweichow Moutai surged 9.5 per cent after its new chief executive pledged to restrain distributors from raising prices, a move that aided stock momentum, according to China Asset Management. Wuliangye Yibin and Luzhou Laojiao both rallied by 10 per cent.
Shandong Kaisheng New Materials began trading for the first time in mainland China, with the stock surging 548 per cent to 33.50 yuan.