09 Feb Hong Kong stocks erase intervention-driven rally amid China’s economic woes as Year of the Rabbit ends with worst payback on record
Hong Kong stocks erase intervention-driven rally amid China’s economic woes as Year of the Rabbit ends with worst payback on record
The Hang Seng Index slipped 2 per cent to 15,554.17 at 10.01am local time. The three-day losing streak reduced this week’s gain to 0.3 per cent, overturning all of the euphoric 4 per cent jump on February 6 following Beijing’s move to stem a loss of confidence. The Hang Seng Tech Index slid 2.8 per cent.
Chinese developer Longfor Group slumped 7.9 per cent to HK$8.42 and peer China Resources Land lost 3.8 per cent to HK$23.05. Alibaba Group tumbled 3.1 per cent to HK$68.20 and Tencent retreated 1.6 per cent to HK$282.60. Meituan lost 2.3 per cent to HK$66.60 and Baidu weakened 2.6 per cent to HK$100.20.
Hong Kong’s stock market will trade for half a day on Friday to usher in the Year of the Dragon, and will shut on February 12 and 13 for the Lunar New Year. China’s onshore exchanges will close on Friday and all of next week.
Stocks have quickly lost momentum as investors took advantage of Tuesday’s rally to sell into strength. A government report this week showed declines in consumer and producer prices in mainland China extended into January, signalling weak demand at home and abroad. China’s economy needs more forceful stimulus, not just stock market intervention, some analysts said.
Short-selling in China slumps to 3-year low after curbs imposed to lift market
Short-selling in China slumps to 3-year low after curbs imposed to lift market
The Hang Seng Index is set to end the Year of the Rabbit in misery. The benchmark has lost 28 per cent in value since the lunar year began in January 22, 2023, the worst performance versus four past zodiac years. The index slumped 16 per cent in 2011, rallied 70 per cent in 1999, lost 8.8 per cent in 1987 and surged 76 per cent in 1975.
Other major Asian markets gained after US stocks closed overnight at an all-time high. Japan’s Nikkei 225 climbed 0.3 per cent and Australia’s S&P/ASX 200 added 0.2 per cent. South Korea’s market is closed for a holiday.
