Hong Kong stocks recover from 9-month low as market approaches oversold zone while JD.com, Lenovo highlight earnings concerns
- Hang Seng Index revisited the lowest level since November amid growing concerns about China’s economic, credit worries before mounting a recovery
- Minutes from the Fed’s July policy meeting showed policymakers were still inclined on tightening to tame inflation
The Hang Seng Index dropped less than 0.1 per cent to 18,326.63 at the close of Thursday trading. The benchmark earlier slumped as much as 2.3 per cent to the lowest level since November. The Tech Index overturned a 2.5 per cent slide to advance 0.8 per cent, while the Shanghai Composite Index rose 0.4 per cent.
Elsewhere, Ping An Insurance Group lost 1.9 per cent to HK$46.55 and China Merchants Bank sank by as much to HK$31.10 on concerns missed payments on some wealth management products by trust companies will spread. Developer Country Garden tumbled fell 7.2 per cent to HK$0.77 amid a liquidity crunch.
The Hang Seng Index’s 14-day relative strength index fell to 34 on Thursday, approaching the 30-point threshold that indicates the sell-off is excessive. The 80-member benchmark index has lost about 5 per cent over the past five days, and 11 per cent over the past six months.
“It’s about confidence,” said Min Liangchao, a fund manager at HSBC Jintrust Fund Management in Shanghai. “The property industry, which has a big sway over the economy, is still trending down and the risks from overseas are still building up. So, there’s a slump in the risk appetite.”