Most Hong Kong stocks slide on concerns Covid lockdowns to leave China behind the curve in arresting economic slump
- Stocks revisited March 15’s low as China’s go-slow approach on stimulus could leave policy makers behind the curve in arresting economic losses
- HSBC, Hang Seng Bank and Country Garden led losses while an overnight sell-off in US equities rattled investors in Asian trading
The Hang Seng Index was little changed near a six-week low of 19,946.36 at the close of Wednesday trading as 40 of the 66 index members declined. HSBC and Hang Seng Bank tumbled more than 2 per cent. The Tech Index rebounded 1.7 per cent after wavering between gains and losses.
The Shanghai Composite Index rallied 2.5 per cent, rebounding from a two-year low while the Shenzhen Component Index jumped 4.4 per cent amid as economists called for more policy stimulus. The Shanghai benchmark has lost 7.9 per cent since March 28 when authorities started locking down the city to control the Omicron wave.
“The market is worried that earnings from some of the bellwether companies will fall short of expectations,” said Lu Bin, chief investment officer at HSBC Jintrust Fund Management in Shanghai. “Investors are pessimistic about results in the first quarter and the current quarter.”
On the flip side, Haidilao surged 11 per cent to HK$15.04 and JD.com added 3.6 per cent to HK$219.80.