Hong Kong stocks slide as wave of Covid-19 cases spreads among city’s bankers, expatriates

The Hang Seng Index fell 2.2 per cent, upending a three-day rally while benchmarks in mainland markets fluctuate near a two-month high

China is concerned about impact and fallout from the US$1.9 trillion US stimulus after raising bubble warning earlier this month

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Local stocks took a hit on Friday as a spike in Covid-19 cases from a gym cluser. Photo: EPA-EFE

Published: 10:54am, 12 Mar 2021Updated: 12:12pm, 14 Mar 2021

Hong Kong stocks slumped after the city’s government logged higher Covid-19 cases as a super-spreader cluster emerged and affected a growing list of financial-market executives. Stocks in mainland China pared gains.

The Hang Seng Index tumbled 2.2 per cent to 28,739.72 at the close of trading, the most in two weeks. The benchmark fell 1.2 per cent for the week. The CSI 300 Index of the biggest stocks in Shanghai and Shenzhen gained 0.4 per cent. The gauge ended the week with a 2.2 per cent loss, a fourth straight week of setback.

Hong Kong was expecting about 60 new Covid-19 cases on Friday, according to a source, with many linked to a “super-spreader” cluster at a popular fitness centre in the city. Precautionary measures have been tightened as one government adviser warned could herald the city’s fifth wave of infections.

More than 240 people who visited Ursus Fitness have been placed in quarantine, after 17 customers and staff members tested positive in just two days, including some from within the expatriate community and forcing some international schools to shut down. The gym is said to be popular with bankers, lawyers and money managers in the city.

“Everyone expected the coronavirus situation in Hong Kong to stabilise. Now that we have seen a big cluster, investors are getting a bit concerned,” said Stanley Chan, director of research at Emperor Securities. “Investors are more cautious as the markets have been quite volatile recently. They may be more inclined to reduce their exposure to the markets.”

AIA Group led declines among Hang Seng Index blue chips, crashing by 5.3 per cent to HK$96. The value of new business fell 33 per cent last year, greater than market expectations, the insurer reported in its annual results. HSBC lost 2.4 per cent to HK$45.75 with financial stocks poorer by 2.7 per cent.