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Hong Kong stock market
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Hong Kong stocks fall for a second straight day as investors await US inflation data, progress on debt-ceiling talks

  • State-owned Chinese lenders Bank of China and ICBC among the big losers, as traders resort to profit-taking
  • US consumer prices are expected to rise by 5 per cent in April, according to Bloomberg

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A pedestrian passes by the Hong Kong stock exchange electronic screen. Photo: AP Photo
Jiaxing Li
Hong Kong stocks retreated as investors waited on the sidelines ahead of US inflation data, with the US debt-ceiling impasse further souring sentiment. Longfor Group led the decline in property developers while a rally in state-owned firms lost traction.
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The Hang Seng Index fell 0.5 per cent to 19,762.20 at the closing of Wednesday trading, following the 2.1 per cent pullback on Tuesday. The Tech Index added 0.3 per cent, while the Shanghai Composite tumbled 1.2 per cent. A gauge tracking US-listed Chinese stocks tumbled 2.3 per cent overnight in New York.

Property developers Longfor dropped 3.9 per cent to HK$20.70 and Country Garden retreated 1 per cent to HK$1.97, while China Resources Land tumbled 3.2 per cent to HK$34.55. Alibaba Health and Meitun both slipped 1 per cent to HK$5.13 and HK$129.00, respectively.

Bank of China lost 3 per cent to HK$3.27, while ICBC dropped 3 per cent to HK$4.47, leading a retreat among state-linked stocks as a bull run started to lose traction. A gauge tracking state companies listed in Hong Kong slid 1 per cent.

The US consumer price data, due later on Wednesday, is expected to rise 5 per cent year on year in April, according to a consensus of analysts compiled by Bloomberg. The CME’s FedWatch tool shows the market is now pricing in a 77.7 per cent chance of the Fed pausing on rates next month, compared with 84.5 per cent two days ago.

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