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Deb Price

Daniel Ren

China and Hong Kong stocks fell Tuesday, as traders bagged profits from a big run-up earlier in blockchain-related and other shares while HSBC continued to weigh on the Hang Seng Index.
The Hang Seng slipped 0.4 per cent to 26,786.76, with heavyweight bank HSBC dropping 1.3 per cent to HK$59.45 as investors punished it for a second day after its third quarter results missed estimates.
“27,000 is a very strong resistance. Both yesterday and today, HSI retreated after hitting that level,” said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai.
The Shanghai Composite Index fell 0.9 per cent to 2,954.18, snapping a two-day winning streak.
Only 281 stocks ended up with gains, while 1,208 lost and 42 were unchanged.
The CSI 300 Index of large stocks trading in Shanghai and Shenzhen fell 0.4 per cent to 3,910.23.
Meituan Dianping and Xiaomi shares jump as they become available to mainland traders on Stock Connect
Kweichow Moutai, the world’s most valuable liquor company, gained 1.3 per cent to 1,193 yuan.
Mainland-listed blockchain stocks staged a correction in the afternoon as profit-taking set in with analysts warning about frothy valuations.
An index compiled by East Money Information that tracks the 172 blockchain A-share stocks lost 1.1 per cent to 820.09, following an 8.1 per cent rally on Monday when President Xi Jinping’s remarks on encouraging blockchain development sparked a buying spree.
On Monday, 107 A-share firms jumped to the daily 10 per cent upper limit, but the number dropped to 24 today.
Shorting Tencent with a long view on Alibaba returns the wily trader 29 per cent, on track for the best annual return in five years
Xinhu Zhongbao, which engages in the real estate industry, was among the few stocks among the 172 blockchain-related companies that soared to the 10 per cent daily trading cap for two consecutive days. Its shares closed at 3.5 yuan, up 21 per cent from the closing price of 2.89 yuan last Friday.
“Valuation has turned out to be frothy in many of the stocks,” said Ivan Li, an asset manager with hedge fund Loyal Wealth Management. “Investors need to be cautioned about increasing risks in chasing the rally.”
HSBC to quicken cost cuts after third-quarter profit trails estimates on weaker retail banking, global markets
Gree Electric Appliances, China’s largest air-conditioner maker, jumped 4.4 per cent to 59.39 yuan after its state-owned parent agreed to sell a 15 per cent stake to a private equity fund backed by Hillhouse Capital.
In Hong Kong, WH Group, the world’s largest pork processor, delivered results for the first nine months of the year that impressed investors, sending its stock up 5.8 per cent to HK$8.27.
It said its revenue increased 3.7 per cent to US$17.19 billion and its profit rose by 8.5 per cent to US$874 million in the nine-month period.
Chinese smartphone maker Xiaomi and ticketing-to-food delivery service provider Meituan Dianping fell, after posting gains Monday when they first became available to southbound traders on the Stock Connect.
Xiaomi finished down 3.6 per cent at HK$8.86, while Meituan Dianping lost 1.8 per cent to HK$92.
Profit taking was the reason, said Kenny Tang Sing hing, chief executive at Royston Securities.
“I think Meituan will still benefit from the fund flow from mainland China and also the results are expected to improve a lot in the third quarter. So I think the prospect for Meituan is still looking good,” he said.
“But for Xiaomi, the fundamental is still not too attractive because the company still highly relies on the hardware business of which the gross profit margin is very low,” Tang added.
Tencent shed 1.55 per cent to HK$317, closing below the key support level of HK$320 again after gaining 1.7 per cent to snap a three-day losing streak on Monday.


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Hong Kong stock market

China, Hong Kong stocks fall as HSBC continues to weigh on Hang Seng, traders scramble away with profits from blockchain run-up

Investors monitor stock prices at a brokerage in Beijing on October 9, 2019. Photo: Associated Press

Meituan Dianping and Xiaomi shares jump as they become available to mainland traders on Stock Connect

Meituan Dianping’s team gets ready to deliver food orders. Photo: Xinhua

HSBC to quicken cost cuts after third-quarter profit trails estimates on weaker retail banking, global markets

Anti-government protesters set up a catapult and barricade near an HSBC branch in Hong Kong’s Mong Kok district in this photo from October 6. Photo: Handout

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HSBC falls for second day after delivering worse-than-expected third-quarter results
WH Group jumps 5.8 per cent after it wows investors with results for first nine months of year



Chinese smartphone maker Xiaomi and ticketing-to-food delivery service provider Meituan Dianping fell, after posting gains Monday when they first became available to southbound traders on the Stock Connect.


China, Hong Kong stocks fall as HSBC continues to weigh on Hang Seng, traders scramble away with profits from blockchain run-up

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} HSBC falls for second day after delivering worse-than-expected third-quarter results WH Group jumps 5.8 per cent after it wows investors with results for first nine months of year

HSBC falls for second day after delivering worse-than-expected third-quarter results

WH Group jumps 5.8 per cent after it wows investors with results for first nine months of year