China stocks slip, Hong Kong shares slide from six-week high, as Shanghai reopens after two-month lockdown
- Shanghai Composite slips by 0.1 per cent at the close after trading lower for most of the day
- The Hang Seng Index slides 0.6 per cent, snapping a three-day rally
The Shanghai Composite Index slipped by less than 0.1 per cent to 3,182.16 at the close after trading lower for most of the day. The Hang Seng Index slid 0.6 per cent to 21,294.94, snapping a three-day rally that had driven the benchmark up by 6.5 per cent. The Hang Seng Tech Index lost 1.1 per cent.
Consumer discretionary and industrial stocks gained on the mainland market, while energy producers dropped by the most among industry groups.
“I expect a continued recovery in consumer activity due to declining new infections and easing restrictions across the country,” said David Chao, a strategist at Invesco in Hong Kong. “The government’s recent monetary and fiscal support measures should also stabilise growth and add fuel to the economy’s main propellers. It’s possible that we’re seeing early signs of the economy slowly clawing its way towards a rebound in the second half, although the journey could be bumpy in light of a complicated global macro backdrop.”