The Hang Seng Index dropped 1.4 per cent to 17,832.82 at the close of Thursday trading after surging 3.9 per cent on Wednesday to a one-month high. The Tech Index lost 1.9 per cent, while the Shanghai Composite Index declined 0.7 per cent.
Mainland investors sold HK$9.5 billion (US$1.2 billion) worth of shares in Hong Kong on Wednesday, the most in more than two months, according to Stock Connect data. They took HK$5.8 billion off the table this week, while foreign investors offloaded another 2.1 billion yuan (US$290 million) worth of mainland stocks to extend the sell-off since end-July.
“The downtrend for Hong Kong markets this year is not something that could be turned around in short term” amid China’s slowing growth and higher US rates, Angus Chan, analyst at UBS, said at a briefing on Thursday. Local stocks are likely to be range for rest of the year, with little catalysts ahead, he added.
Singapore’s Temasek, Saudi’s PIF back China’s consumption stocks, filings show
Singapore’s Temasek, Saudi’s PIF back China’s consumption stocks, filings show
China’s economic slowdown has forced analysts to repeatedly trim their earnings forecasts. Downgrades have outpaced upgrades this year by almost four to one for companies listed in Shanghai and Shenzhen, according to data compiled by Bank of America.
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US President Biden talks potential minerals partnership with Indonesian counterpart Widodo
US President Biden talks potential minerals partnership with Indonesian counterpart Widodo
Elsewhere, Zhejiang XiaSha Precision Manufacturing jumped 106 per cent to 110.49 yuan on its first day of trading in Shenzhen.
Asian stocks erased gains. Japan’s Nikkei 225 slumped 0.3 per cent, while Australia’s S&P/ASX 200 declined 0.7 per cent and South Korea’s Kospi was little changed.
