Hong Kong stocks weaken as traders exit overheated market and China reports slower growth while Fosun bucks downtrend

China’s economy slowed last quarter as a surge in Covid infections in December disrupted activity and authorities removed mobility curbs

Hang Seng Index has rallied 48 per cent from the recent low on October 31, sending its technical buy-sell indicator into an overbought zone

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A man walks past a bank’s electronic board showing the Hang Seng Index in June 2022. Photo: AP

Published: 10:48am, 17 Jan 2023Updated: 4:59pm, 17 Jan 2023

Hong Kong stocks fell from a six-month high after a government report showed China’s economic growth slowed last quarter, giving investors an excuse to cut their holdings in an overheated market.

The Hang Seng Index declined 0.8 per cent to 21,577.64 at the close. The Tech Index lost 0.1 per cent and the Shanghai Composite Index also dropped 0.1 per cent.

E-commerce platform owner JD.com slipped 1.7 per cent to HK$239.60 and search engine operator Baidu lost 1.6 per cent to HK$132.10. Meituan slid 0.5 per cent to HK$164.80. Macau casino operator Sands China tumbled 2.8 per cent to HK$27.95 and WuXi Biologics slumped 6.1 per cent to HK$69.40.

China’s economy grew 2.9 per cent in the fourth quarter last year, easing from a 3.9 per cent pace in the preceding three months, the statistics bureau said. Full-year growth was 3 per cent versus 8.1 per cent in 2021, it added.

“This deceleration shows the pressure of uncertainties associated with Covid,” said Zhu Chaoping, a strategist at JPMorgan Asset Management in Shanghai. “On the other hand, risks persist in the property sector and local government debt. Accommodative policies should also remain in place to support business confidence.”

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