15 Feb Hong Kong stocks drop as Asian fund managers show no urgency to chase market amid China’s policy support, intervention
Hong Kong stocks drop as Asian fund managers show no urgency to chase market amid China’s policy support, intervention
The Hang Seng Index slipped 0.4 per cent to 15,816.10 at 10.30am local time, surrendering half of Wednesday’s advance. The Tech Index declined 0.7 per cent, after logging a 2.2 per cent rally a day earlier. Financial markets in mainland China are closed for this week for the Lunar New Year holiday.
Tencent fell 1.2 per cent to HK$286.60 and Meituan lost 0.9 per cent to HK$70.45. EV maker Li Auto slumped 1.5 per cent to HK$117.80 and developer Sun Hung Kai Properties retreated 1 per cent HK$70.70, while appliances maker Haier Smart Home lost 0.8 per cent to HK$23.40.
Ping An Insurance tumbled 0.4 per cent to HK$33.30 after analysts at CLSA cut their rating on the firm’s shares with a price target of HK$31, according to Bloomberg data.
Stocks swung this week after Japan slipped into a technical recession after an official report on Thursday showed the economy unexpectedly shrank last quarter. A stronger US inflation data also tempered bets on rate cuts by the Federal Reserve at the March and May meeting, according to Fed fund futures.
Year of the Dragon: Hang Seng to attempt 20,000 points as funds seek to end pain
Year of the Dragon: Hang Seng to attempt 20,000 points as funds seek to end pain
In Asia, regional funds remained hesitant about chasing Chinese stocks despite efforts by Beijing to stem a rout and repair market confidence, Bank of America said in a report on February 13, based on a survey from February 2 to 8 of people managing US$331 billion of assets.
More survey participants expected a weakening rather than a strengthening in the year ahead for the first time since the periodical survey began 17 months ago, the US bank said. Most them were willing to sit out or avoid the market, including 15 per cent who were looking to cut risk on any bounces, the report added.
Elsewhere, major Asian markets were mixed. The Nikkei 225 in Japan advanced 0.7 per cent while the S&P ASX 200 in Australia gained 0.5 per cent and the Kospi in South Korea dropped 0.1 per cent.
