Tencent, Alibaba pace Hong Kong losses on China GDP data while Macau casino stocks extend rally on regulatory boost

The benchmark index fell as a government report today showed China’s economy cooled further in the final quarter of 2021 amid sporadic Covid-19 outbreaks

Macau casino stocks added to their best day in six weeks on Friday as regulatory concerns over their concessions ease

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China’s GDP slowdown puts the spotlight on the central bank as investors look for further policy easing signs. Photo: EPA-EFE

Published: 10:00am, 17 Jan 2022Updated: 5:05pm, 17 Jan 2022

Hong Kong stocks slipped as Alibaba Group Holding, Tencent Holdings and JD.com led tech peers lower after a government report showed China’s economy cooled further last quarter. Macau casino operators extended a rally following a regulatory boost.

The Hang Seng Index fell 0.7 per cent to 24,218.03 at the close of Monday trading, a second day of losses. The city’s Tech Index retreated 0.8 per cent while China’s Shanghai Composite Index climbed 0.6 per cent.

Alibaba, the owner of this newspaper, declined 0.6 per cent while JD.com retreated 1.1 per cent. Tencent Holdings lost 1.7 per cent as the WeChat operator looks to shrink its empire under a 2022 strategy.

China’s economy expanded 4 per cent in the fourth quarter last year, slowing from 4.9 per cent in the preceding three months, the statistics bureau said on Monday. That was stronger than the market consensus of 3.3 per cent among economists tracked by Bloomberg.

“The below-trend growth has raised some concerns about China’s short-term economic stability, and an escalation in stimulus policies is highly anticipated,” said Zhu Chaoping, global market strategist at JPMorgan Asset Management. Further cuts to loan prime rates are among most possible moves, he added.