Hong Kong stocks slide to 3-month lows as earnings jitters weigh on sentiment
- Jewellery retailer Chow Tai Fook saw retail sales fall 20 per cent from a year earlier in the first quarter and Li Auto slipped after Tesla’s earnings disappointed
The Hang Seng Index fell 0.9 per cent to 17,311.05 at the close, the lowest level since April 25. The Hang Seng Tech Index slid 1.5 per cent and the Shanghai Composite Index sank 0.5 per cent.
Jewellery retailer Chow Tai Fook tumbled more than 6 per cent after saying that retail sales fell 20 per cent in the first quarter from a year ago. Chinese electric-vehicle maker Li Auto weakened after Tesla reported earnings that trailed analysts’ consensus estimates and put off its Robotaxi event. Packaged water maker Nongfu Spring slumped after Daiwa Securities Group downgraded its rating on the stock. Meanwhile, NetEase bucked the sell-off ahead of the launch of a new gaming title.
“Trading will more focus on earnings results, with the earnings season kicking off,” said Zhou Zhengfeng, an analyst at Nanjing Securities. “Meanwhile, the market is also closely watching the policy implementation to fulfil the annual growth target. If that does not come through as expected by the market, the risk appetite will be dented.”
Chow Tai Fook tumbled 6.6 per cent to HK$7.39, citing “macro challenges (that) continued to impact consumers’ spending”. Li Auto shed 4.1 per cent to HK$74.50 and its peer BYD lost 2.3 per cent to HK$233. Nongfu Spring plunged 7.1 per cent to HK$30.75 after Daiwa cut its recommendation on the stock to hold from outperform because of weak sales of its natural-water products.