NewChinese and Hong Kong stocks slip lower by midsession

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investors in Hong Kong watch the movement of stock prices as equities in the city and in mainland China were largely flat to slightly weaker by the midday break on Thursday. Photo: Felix Wong

Published: 12:54pm, 6 Aug 2015

Risk-averse sentiment left China and Hong Kong markets largely neutral to easier at the midpoint of Thursday trading, with investors making safe calls pending first half company results or based on probable stimulus flows.

The main China indices opened between 1 and 3 per cent down on Wednesday’s close but quickly equalised to finish less than half a percentage point down. The Shanghai Composite Index went to the break 0.33 per cent weaker at 3,682.31.

The Hang Seng Index closed the morning at 24,404.38, down 0.45 per cent, while the H-shares index ended practically flat.

“Low volatility sectors such as banks and power outperformed in the morning session as investors seem to be currently rather risk adverse,” said Gerry Alfonso, a broker at Shenwan Hongyuan Securities, commenting on China stocks.

“Property developers underperformed as there are no obvious indications of further policy stimulus and the stock market correction might have reduced retail savings for down payment on houses,” Alfonso added.

Conversely, Jiangsu Expressway and China railway H-shares lifted to weekly highs on reports state banks would fund infrastructure investment worth 1.5 trillion yuan (HK$1.87 trillion), while building materials and shipping were strong locally and in the mainland.