Hong Kong shares fall, technology index hits lowest level since November 2022, as traders brace for more weak Chinese reports
The Hang Seng Index fell 1.9 percent to 16,218.60 at 11.22 am local time. The index fell 3% last week, the weakest opening week in 19 years. The technology index fell 3.1 percent to its lowest level since late November 2022, while the Shanghai Composite Index fell 1 percent.
Alibaba Group shares fell 2.5 percent to 69.85 Hong Kong dollars, and JD.com shares fell 4.5 percent to 100.60 Hong Kong dollars. Tencent shares lost 2.1 percent to HK$286, while online gaming peer NetEase fell 3.4 percent to HK$141.20. Electric car maker BYD fell 2.3 percent to HK$203.40, rival Li Auto fell 2.2 percent to HK$131.90, and Meituan fell 4 percent to HK$74.60.
The Chinese economy continued to struggle until the end of last year with continued contraction. Consumer prices are likely to fall 0.4 percent in December from a year earlier, after falling 0.5 percent in November, according to forecasts ahead of an official report on January 12. Another economic report on the same day may show slower growth in imports and exports in 2018. December, according to Goldman Sachs.
“The significant decline in the first week of the year has dampened sentiment,” Kevin Liu, a strategist at CICC Research, said in a report on Sunday. “More political support remains key to reversing the current situation in Hong Kong’s stock market. Otherwise, even if the US Fed cuts interest rates, any recovery is likely to be short-lived.
Singapore hedge fund eyes ‘big rally’ in Chinese stocks after four years of decline
Singapore hedge fund eyes ‘big rally’ in Chinese stocks after four years of decline
The Federal Reserve will hold its first policy meeting on January 30-31. Policymakers have raised borrowing costs 11 times, for a total of 525 basis points, since the March 2022 interest rate hike.
Foreign funds were net sellers of 5.5 billion yuan (US$770 million) worth of mainland stocks last week, increasing their selling over the past five straight months, according to Stock Connect data.
Major Asian stock markets were trading higher. South Korea’s Kospi and Japan’s Nikkei 225 rose 0.3 percent, while Australia’s S&P/ASX 200 rose 0.1 percent.