The Hang Seng Index fell 0.5 per cent to 18,256.48 at the closing of Wednesday trading, retreating from a seven-week high. The Tech Index declined 0.2 per cent while the Shanghai Composite Index lost 0.5 per cent. An index tracking US-listed Chinese stocks surged 7.6 per cent overnight in New York.

Limiting losses, Tencent Holdings added 2.2 per cent to HK$294.40 amid local media reports the WeChat operator has started a new round of lay-offs as it prepares to release its third-quarter report today.

“The plunge in the share prices of property developers is a justified correction, as they are still struggling with debt crisis, and the recent policies won’t have an immediate impact,” said Dickie Wong, an executive director at Kingston Securities. “I’m more optimistic on the tech companies, as their earnings are likely to be solid and there’s no regulatory headwinds facing the sector.”

Chinese EV makers eye Southeast Asian markets as competition escalates at home

Neither of the recent changes to China’s Covid-19 or real estate policies look to be significant enough to reverse the drag on growth that both are currently creating, analysts at Beijing-based consulting firm Trivium China wrote in a research note. “Headwinds to growth will persist.”

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Covid lockdowns spark rare protest in southern Chinese city of Guangzhou

Covid lockdowns spark rare protest in southern Chinese city of Guangzhou

Government reports this month showed activity weakened in October, partly because of tighter Covid-19 controls. Retail sales fell more than expected, while industrial production grew at a slower pace and property sales saw a deeper 23 per cent slump. Growth momentum in the first two weeks of November remained weak, UBS said.