Hong Kong stocks erase most of intervention-driven rally amid China’s economic woes as Year of the Rabbit ends in misery
- Euphoric rally driven by China’s midweek market intervention waned amid renewed concerns about China’s economic woes
- The Hang Seng Index ended with a 29 per cent loss in Year of the Rabbit, the worst on record during the zodiac years
The Hang Seng Index slipped 0.8 per cent to 15,746.59 at the close of trading on Friday. The three-day losing streak reduced this week’s gain to 1.2 per cent, and diminished most of the euphoric 4 per cent jump on February 6 following Beijing’s move to stem a loss of confidence. The Hang Seng Tech Index declined 1.3 per cent.
Developer Longfor Group slumped 6.7 per cent to HK$8.53 and peer China Resources Land lost 1.9 per cent to HK$23.50. Alibaba Group dropped 1.4 per cent to HK$69.30 and rival JD.com fell 2.1 per cent to HK$86.15. Meituan lost 1.3 per cent to HK$67.30 and Baidu weakened 1.7 per cent to HK$101.20.
Other industry leaders also retreated. AIA Group dropped 0.2 per cent to HK$62.80 and Ping An Insurance slumped 2.5 per cent to HK$32.95. EV maker BYD dropped 0.7 per cent to HK$182.90 and rival Li Auto weakened 1.9 per cent to HK$116.90.
Hong Kong’s stock market stopped trading at midday on Friday to usher in the Year of the Dragon, and will shut on February 12 and 13 for the Lunar New Year. China’s onshore exchanges are closed from Friday to the end of next week.