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Hong Kong stocks slip from two-month high as Covid-19 cases rebound while Chinese tech firms surrender gains
- Stocks ended lower as officials took a cautious with new Covid-19 cases in Shanghai and Hong Kong
- A rally in tech stocks fizzled out even as concerns about policy backlash waned following a late Monday speculation on Didi Global probe
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Hong Kong stocks retreated from a two-month high as retailers pared recent gains amid a rebound in Covid-19 cases in the city and in Shanghai. Tech stocks were mixed as a rally, built on policy speculation, stalled.
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The Hang Seng Index fell 0.6 per cent to 21,531.67 at the close of Tuesday trading. The Tech Index was little changed, surrendering an earlier 1.5 per cent amid speculation on sector crackdown. The Shanghai Composite Index rose 0.2 per cent.
Anta Sports lost 1.5 per cent to HK$90.90 and water-bottling group Nongfu Spring slumped 2.4 per cent to HK$42.84, while Sunny Optical slid 5.1 per cent to HK$120.10. Gains in Alibaba Group and JD.com overshadowed volatile swings in other tech peers.
“The bottom [in Chinese stocks] is basically clear and there is no need for pessimism in strategy,” analysts at Guosheng Securities wrote in a report. Still, the rebound might not happen “in a hurry.”
Shanghai found 10 new infections, officials said on Tuesday, bringing the total to 98 since the city began a gradual reopening on June 1 after two months of lockdown. Local government officials are cautious of a resurgence, requiring large manufacturers to keep operating in “safe bubbles.”
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Hong Kong logged 543 new cases on Monday. The government said it’s too early to confirm the presence of the sixth wave in the city.
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