Hong Kong stocks slide on mixed Tencent results, profit-taking
After an 18 per cent rally on the Hang Seng Index from an April low, investors are worried that the run-up was too fast
The Hang Seng Index fell 0.8 per cent to 23,453.16 at the close. The Hang Seng Tech Index dropped 1.6 per cent.
On the mainland, the CSI 300 Index slid 0.9 per cent, and the Shanghai Composite Index retreated 0.7 per cent.
Investors have turned their attention to corporate earnings and economic challenges, such as China’s deflationary trend and sticky inflation in the US, after China and the US reached a 90-day reprieve on the tariff war by lowering the levies on each other’s imported products. Meanwhile, profit-taking pressure is building up after the Hang Seng Index has rebounded 18 per cent from an April, with some investors judging the run-up as too fast.
“While the detent in the trade tensions has left the door open for some upside room on stocks, that process won’t be done overnight,” said Zheng Xiaoxia, an analyst at Hua An Securities. “How the market will move going forward still requires constant improvement in the economic fundamentals.”