Hong Kong stocks make biggest retreat in three months amid mixed China outlook as property gauge sinks
- The Hang Seng Index hit a fresh 14-month low and has lost 2.3 per cent this week on top of a 4.7 per cent loss in the first two trading weeks of 2024
- A gauge tracking mainland developers in Hong Kong tumbled to a record low
The Hang Seng Index fell 2.2 per cent to 15,865.92 at the close of Tuesday trading, the biggest retreat in nearly three months to touch a fresh 14-month low. The Tech Index tumbled 2.3 per cent, while the Shanghai Composite Index added 0.3 per cent to recoup an earlir loss of as much as 0.9 per cent.
Alibaba fell 2.3 per cent to HK$68.40, and peer JD.com lost 3.3 per cent to HK$93.40 while Tencent slid 2.4 per cent to HK$282.40. Meituan lost 2.3 per cent to HK$73.90, while HSBC Holdings fell 3 per cent to HK$59.10. Sportswear maker Li Ning slid 2.5 per cent to HK$17.40, while rival Anta weakened 3.4 per cent to HK$72.
Investors expect economic data due Wednesday, the last batch of major 2023 data, to paint a mixed picture. China’s gross domestic product likely increased 5.2 per cent last year, according to economist forecasts compiled by Bloomberg, in line with Beijing’s target.
Meanwhile industrial production is expected to have expanded 6.6 per cent in December, compared with the 6.6 per cent growth in November, while retail sales likely expanded 8 per cent in December, slowing from the 10.1 per cent growth in the previous month.
“Hong Kong stocks’ performance has been quite disappointing so far this year,” Jason Chan, investment strategist at Bank of East Asia, said during a media briefing on Tuesday. The biggest concern for investors is still the strength of the mainland economy, and it’s possible for the Hang Seng Index to test new lows under selling pressure, he added.
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Further weighing on sentiment, developer Longfor tumbled 6.6 per cent to HK$9.51, the lowest since February 2016, after Daiwa slashed the 12-month price target by 54 per cent to HK$12.20 on weak earnings outlook. A gauge tracking mainland developers listed in Hong Kong tumbled 3.2 per cent to an all-time low.
Elsewhere, Beilong Precision Technology surged 192 per cent to 62.67 yuan per share on the first day of trading in Shenzhen.
Other major Asian markets traded lower. Japan’s Nikkei 225 lost 0.8 per cent, while South Korea’s Kospi and Australia’s S&P/ASX 200 both slid 1.2 per cent.
