Hong Kong and China markets fall as investors await stimulus measures from annual parliamentary meetings
- HKEX rises after US Senate passes bill that could disqualify many Chinese companies from listing shares on US stock exchanges
- Vaccine maker CanSino Biologics loses 13 per cent as investors resort to profit-taking on the back of stellar 385 per cent gains this year
Hong Kong and China stocks fell after struggling for direction in the first half of trading, as investors eagerly anticipate the roll out of economic stimulus at the upcoming annual parliamentary session to boost the mainland’s coronavirus-battered economy, and rising US-China tensions.
The Hang Seng Index fell 0.5 per cent to 24,280.03, snapping a three-day rally this week. The Shanghai Composite Index lost 0.6 per cent to 2,867.92.
“Investors are trying to identify winners and losers ... as the Two Sessions will only affect the market in the short term,” said Alex Wong, director at Ample Finance Group, noting investors were shying away from Hong Kong companies as the outlook for the city’s economy remains weak.
Investors initially pushed stocks up after a tech-led rally overnight in the US, but sentiment turned cautious as the day progressed.
In Hong Kong, apparel maker Shenzhou International led the decline. The stock fell 3.8 per cent after Credit Suisse lowered its target price on expectation of a drop in orders. Index heavyweight Tencent fell 1.9 per cent. Chip maker SMIC plunged 7.3 per cent.
Bourse operator HKEX, which itself is listed on Hong Kong stock exchange, jumped 2 per cent on optimism that it could become a preferred listing destination for Chinese companies. The boost came after the US Senate passed legislation on Wednesday that could disqualify many mainland firms from listing shares on US stock exchanges without adhering to the security laws and auditing regulations.