Hong Kong stocks end 3-day run on losses in Li Ning and Chinese property developers

Country Garden slumped 4.9 per cent after missing a bond coupon payment, dragging peers China Overseas Land and Longfor with it

Li Ning, which rose 8 per cent on Tuesday, fell 3.4 per cent after saying it was not aware of any reason for the unusual share price movement

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Hong Kong stocks are on a mini winning streak. Photo: Shutterstock

Published: 10:48am, 13 Mar 2024Updated: 5:46pm, 13 Mar 2024

Hong Kong stocks halted a three-day gain, taking a respite from a run that helped the main equity gauges break through some key technical barriers.

The Hang Seng Index closed 0.1 per cent lower at 17,082.11, snapping a rally that saw the benchmark add 5.3 per cent in the past three days. The Hang Seng Tech Index held onto gains, rising 0.3 per cent. The Shanghai Composite Index retreated 0.4 per cent.

Sportswear maker Li Ning slumped 3.4 per cent to HK$21.35 after saying that it was unaware of the reason for a surge in its share price on Tuesday when a media report said that its namesake founder was considering taking the company private. Country Garden Holdings fell 4.9 per cent to HK$0.58 after it missed a bond coupon payment, dragging other Chinese property developers with it.

Tempering the losses, Li Auto surged 3.2 per cent to HK$151.70 and AIA Group added 0.5 per cent to HK$64.85 before its earnings on Thursday that may show a jump in full-year profit for 2023.

Buying sentiment stalled after the Hang Seng Index erased its year-to-date loss on Tuesday and the tech index, which tracks the biggest stocks in the sector, rebounded 21 per cent from a January low, technically defined as entering a bull market. Trading volume, meanwhile, rose to a six-month high of HK$150 billion (US$19.2 billion).

“While expectations for earnings are not fully on the mend, improved sentiment and low valuations are the main catalysts that are powering stocks now,” said Carl Cai, an analyst at Bocom International Holdings in Hong Kong. “We expected the rebound to carry on for a couple of months.”