Hong Kong stocks end June with a whimper on China slowdown concerns as bubble-tea chain Nayuki slumps in market debut

Stock benchmarks in Hong Kong and Shanghai logged their first monthly setback since March amid weaker economic data in China

Chinese bubble-tea chain Nayuki sank 13.5 per cent in Hong Kong trading debut

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Stocks in Hong Kong closed out June with a whimper on data signaling an economic slowdown in mainland China. Photo: Handout

Published: 11:00am, 30 Jun 2021Updated: 4:50pm, 30 Jun 2021

Hong Kong stocks weakened after a government report showed economic activity in China cooled this month amid resurgence in Covid-19 infections. Chinese bubble-tea chain Nayuki Holdings slumped in its trading debut.

The Hang Seng Index fell 0.6 per cent to 28,827.95 for a third day of losses. The gauge logged a 1.1 per cent decline in June, its first loss since March. The Shanghai Composite rose 0.5 per cent while the CSI 300 added 0.7 per cent, but both gauges also recorded their first monthly setback since March.

Hengan International led declines among blue chips, falling 4.4 per cent to HK$52. China Resources Land dropped 3.4 per cent to HK$31.45, while Geely Automobile declined 3.4 per cent to HK$24.45. Ping An Insurance slid 0.7 per cent to HK$76.05 after it announced plans to acquire stakes in six Raffles City properties from Singapore’s CapitaLand for up to US$5.1 billion.

Limiting losses, AIA Group advanced 0.8 per cent to HK$96.50. The insurer agreed to pay US$1.86 billion for a stake in the life insurance arm of the China Post Group. Moody’s Investors Service said the acquisition was credit positive as “it enhances AIA’s market reach” in China.

China’s manufacturing purchasing managers’ index fell to 50.9 in June from 51.0 in May, while the non-manufacturing indicator slipped to 53.5 from 55.2, the statistics bureau reported on Wednesday. The indexes, however, remained in expansion mode.