Hong Kong stocks fall to 5-week low after bad news on PBOC easing momentum as Xi downplays virus impact on economy

Tech stocks have slumped 7.6 per cent this week in Hong Kong as market struggled for clues on policy easing impetus from Beijing

CNOOC surged in Shanghai debut after a US$4.3 billion offering to trade at 54 per cent premium to its own Hong Kong-listed shares

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Thousands of Hong Kong residents flock to the narrow strip of a street market in Mong Kok on April 18 as social curbs are eased. Photo: dpa

Published: 10:53am, 21 Apr 2022Updated: 5:17pm, 21 Apr 2022

Hong Kong stocks fell for a third day as traders struggled for policy easing signs from China’s top leadership amid economic losses caused by Covid-19 lockdowns. Prices drifted after the central bank offered a token easing step.

The Hang Seng Index retreated 1.3 per cent to 20,682.22 at the close of Thursday trading, the lowest level since March 16. The Tech Index tumbled 3.5 per cent This week’s losses in the gauges of 3.9 per cent and 7.6 per cent are the most in six weeks. The Shanghai Composite Index declined 2.3 per cent.

Alibaba Group Holding lost 3.1 per cent to HK$87.90 while JD.com fell 6.5 per cent to HK$206.40 and Meituan tumbled 4.9 per cent to HK$137.80. Tencent and NetEase weakened by at least 3 per cent each.

President Xi Jinping delivered a speech via a video link at the annual Boao Forum in southern Hainan province on Thursday. This year’s theme is centred on the Covid-19 pandemic, which has threatened to freeze economic activity in key manufacturing and technology hubs.

Xi emphasised the economy’s resilience, saying China “offers powerful momentum” in pandemic recovery. He downplayed concerns about the economic impact from its hardline virus control measures which has shut factories and caused supply-chain disruptions for carmakers like Li Auto, Xpeng and Tesla.

There are “concerns whether the Chinese government really has the tools or sufficient measures to boost the economy, given the impact of lockdowns,” said Mark Po, head of research at China Galaxy International Securities in Hong Kong.