Tech stocks slip in Hong Kong while slump in Chinese property stocks pegs back market bulls

Name: Chinese real estate giants Evergrande and Kaisa continue unloading assets to cover debt
Uploaded: 2022-01-13T02:32:18.000Z
Duration: 3 min 2 s
Description: Chinese real estate giants Evergrande and Kaisa continue unloading assets to cover debt

A sharp rebound in tech stocks came to a halt as JD.com, Alibaba and peers slipped after logging their best gain in three months on Wednesday

An index tracking mainland developers slumped by the most in a month amid growing signs of funding distress

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A woman stands next to an electronic board displaying the Hang Seng Index on November 29. Photo: EPA-EFE

Cheryl Heng

Published: 10:32am, 13 Jan 2022Updated: 5:33pm, 13 Jan 2022

Chinese technology stocks slipped in Hong Kong as traders locked up sizeable gains over the past week. An index tracking Chinese property developers fell by the most in a month amid growing signs of credit distress.

The Hang Seng Tech Index lost 1.8 per cent at the close of Thursday trading, after logging its best gain in three months on Wednesday. The benchmark Hang Seng Index ended a choppy day with a 0.1 per cent gain as oil producers advanced. China’s Shanghai Composite Index lost 1.2 per cent.

Alibaba Group Holding, the owner of this newspaper, declined 0.6 per cent, while its health unit tumbled 7 per cent. JD.com slid 3.9 per cent after logging its best rally in five months on Wednesday. NetEase dropped 3.3 per cent, while Tencent and Meituan lost at least 0.4 per cent.

Tech stocks rallied this week on cheap valuations and policy easing bets, helping the 30-member Tech Index recoup US$239 billion of market value along the way.

“Concerns of policy regulations still prevail so we cannot bank too much for a strong rebound,” said Louis Tse Ming-kwong, managing director of Wealthy Securities. Plus, the reporting season is coming, so some traders are now locking up their huge winnings, he added.

Chinese developers added to market weakness. Sunac China crashed 19 per cent after announcing a HK$4.52 billion (US$580 million) share sale plan to ease its liquidity crunch. Yuzhou Group slipped 6.9 per cent as it sought leniency from bondholders.

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Chinese real estate giants Evergrande and Kaisa continue unloading assets to cover debt

Country Garden retreated 7.8 per cent and its management service subsidiary declined 4.9 per cent. China Overseas Land lost 2 per cent. A gauge tracking mainland property developers tumbled 5.4 per cent, the most in a month.