Hong Kong stocks flat as investors turn cautious ahead of key data releases

Electric vehicle makers rally after China Commerce Minister says accusations of EV overcapacity are groundless

This week, China is due to release data on inflation and foreign trade while the central bank may also publish loans, money supply and aggregate financing data

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Screens showing the index and stock prices outside Hong Kong Exchange Square (HKEX) in Central. Photo: Sun Yeung

Published: 10:58am, 8 Apr 2024Updated: 4:59pm, 8 Apr 2024

Hong Kong stocks ended flat but the mood was cautious as investors focused on a swathe of key economic data due to be released later this week to get insights about the strength of the recovery in the world’s second largest economy.

The Hang Seng Index added 0.1 per cent to 16,732.85 at the close. The Hang Seng Tech Index slipped 0.2 per cent and the Shanghai Composite Index lost 0.7 per cent.

Li Auto rallied 4.1 per cent to HK$120.80 and BYD climbed 2.1 per cent to HK$202. China’s Commerce Minister Wang Wentao said US and European accusations of EV overcapacity are groundless and that Chinese electric vehicle companies were not reliant on government subsidies to gain competitive advantages. Drug maker Wuxi Biologics rose 5.4 per cent to HK$14.08 and affiliate Wuxi AppTec climbed 3.4 per cent to HK$36.35.

Budweiser Brewing slumped 5.7 per cent to HK$10.58 after Jefferies expected the brewer to report flat sales in the first quarter and peer China Resources Beer sank 4.8 per cent to HK$33.90.

China is due to release March inflation data on Thursday and foreign trade statistics on Friday. The central bank may also reveal figures on new loans, money supply and aggregate financing during the week. The March and first-quarter data will be crucial as many global fund managers have turned positive on Chinese stocks, after a raft of market rescue measures. But some analysts say more stimulus will be required.