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Hong Kong stocks tumble as Politburo balm fails to soothe, Hang Lung dives post-earnings
- The Politburo meeting readout vowed more macro policies to stabilise confidence but provided few details, and offered no relief to investors after the Third Plenum letdown
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Hong Kong stocks tumbled to a three month-low as investors fretted over the lack of forceful stimulative measures from China’s Politburo meeting. Local developers tumbled, with Hang Lung Properties crashing to a 24-year low after it reported its income halved amid a property downturn.
The Hang Seng Index lost 1.4 per cent to 17,002.91 at the close of trade on Tuesday. The Tech Index tumbled 1.5 per cent, while the Shanghai Composite Index declined 0.4 per cent to a six-month low.
All but five of the 83 index members declined. Tencent tumbled 1.9 per cent to HK$351.40, leading decliners among tech heavyweights. EV giant BYD lost 3 per cent to HK$224.40 after it slashed prices for a premium model as the price war showed no signs of cooling.
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Losses deepened during the afternoon trading session, after the readout from Politburo meeting revealed little policy support following the Third Plenum letdown.
Beijing will step up macro policies and stabilise market confidence to ensure it achieves leaderships’ full-year economic growth goal, as the economy faces “increasing negative influence” from the outside world and insufficient demand at home, according to the readout released on Tuesday.
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“There’s nothing new from the readout, just repeating the Third Plenum rhetoric,” said Jason Chan, senior investment strategist at Bank of East Asia. “We do not see any specific measures that investors are looking for. The market could come under bigger pressure if economic data due this week disappoints again.”
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