Hong Kong stocks retreat as Alibaba drags tech peers lower with eyes on key China political meeting
- The Communist Party kicked off the sixth plenary session of the 19th Central Committee on Monday
- Stocks declined amid virus outbreak concerns, even as an official report on Sunday showed exports grew faster than expected last month
The Hang Seng Index retreated 0.4 per cent to 24,763.77 at the close of Monday trading. The Hang Seng Tech Index slid 1.3 per cent, while China‘s Shanghai Composite Index added 0.2 per cent.
“ While we still expect more stimulus from China, it has been less forthcoming than we originally expected, with policymakers prioritising deleveraging over short-term growth,” Pictet Asset Management said in its latest market outlook report. “A renewed surge in Covid cases in China is also a cause for concern.”
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Panic buying after China’s Covid-19 cases continue to surge
Biotechnology stocks retreated, as Pfizer released data that its Covid-19 pill could reduce hospitalisations and deaths in high-risk patients. WuXi Biologics was the index‘s biggest loser as it plunged 8.6 per cent, while Sino Biopharmaceutical declined 1.6 percent.
Major markets in Asia retreated. Stock benchmarks in South Korea and Japan lost about 0.3 per cent, while the Australian index was little changed.
Uju Holding, which provides video marketing services, slumped 4.5 per cent on its first day of trading to HK$6.40.