Hong Kong stocks snap three-day rally as tech leaders slide while Alibaba, oil winners offer bright spots
- Xiaomi, Sunny Optical, Meituan were among loss leaders after mainland fund inflows weakened on Wednesday while trading volume shrank
- Alibaba and oil companies offered some bright spots while market prepares for Kuaishou debut on Friday
The Hang Seng Index slipped 0.7 per cent to 29,113.50 on Thursday as losses deepened in afternoon trading. The Shanghai Composite Index declined 0.4 per cent at 3,501.86.
Tech companies led Thursday’s slump, with the Hang Seng Tech Index sliding 2.3 per cent. Xiaomi was the biggest loser, falling 4.8 per cent to HK$27.55. Sunny Optical declined 4.2 per cent to HK$216.40 and Meituan tumbled 3.2 per cent to HK$401.
Mainland fund inflows into Hong Kong eased to HK$12.4 billion (US$1.6 billion) on Wednesday from HK$17.3 billion on Tuesday, according to stock exchange data. Some HK$239.8 billion worth of stocks changed hands on Thursday, compared with almost HK$287 billion when the Hang Seng Index closed above the 30,000 threshold for the first time since May 2019.
“Everybody wants to get in, but just being cautious ahead of the Lunar New Year holiday next week,” said Louis Tse Ming-kwong, managing director of Wealthy Securities. Lower trading turnover in recent days means “people are reluctant to buy near the 30,000 level and are more likely to sell into strength,” he added.