Li Ning, Anta hurt Hong Kong stocks in worst quarter since reopening amid weak China data, bankers’ pessimism

Gains in Xpeng and BYD mask market weakness as China reports another set of weak manufacturing data, bankers sentiment worsens

China is facing a confidence issue, as investors wait for policy impetus before returning to the market, BlackRock says

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A man on a bicycle stands in front of an electronic board showing major Asian stock indices in Tokyo in September 2022. Photo: Reuters

Published: 10:42am, 30 Jun 2023Updated: 4:45pm, 30 Jun 2023

Hong Kong stocks recorded the biggest quarterly slide since China reopening, after a government report showed Chinese manufacturing contracted in June. A central bank survey showed loan demand fell this quarter, while bankers predicted less accommodative monetary policy in the next three months.

The Hang Seng Index fell 0.1 per cent at 18,916.43 at the close of Friday trading, erasing an earlier advance of 0.6 per cent. The Tech index slipped 0.6 per cent, while the Shanghai Composite Index gained 0.6 per cent. The city’s benchmark index has lost 7.3 per cent since March 31, wiping US$330 billion of market value from its 80 blue-chip members.

Tencent slipped 0.6 per cent to HK$331.60, and Alibaba Group dropped 1.2 per cent to HK$81.20 while Baidu slipped 1.3 per cent to HK$132.80. Macau casino operator Galaxy weakened 1.6 per cent to HK$49.70, while peer Sands China retreated 0.7 per cent to HK$26.70.

Limiting losses, EV start-up Xpeng surged 10.4 per cent to HK$50, while BYD added 0.9 per cent to HK$250.

China’s official PMI Manufacturing Index came in at 49 in June, a third straight month of setback and matching market consensus, the statistics bureau said in Beijing on Friday. The reading was little changed from 48.8 in May and 49.2 in April. A reading below 50 indicates a contraction.