18 Jan Hong Kong stocks halt four-day rout as market’s slump to 14-month low deemed excessive
Hong Kong stocks halt four-day rout as market’s slump to 14-month low deemed excessive
The Hang Seng Index rose 0.5 per cent to 15,351.79 at 9.55am local time. The index has slumped 6.3 per cent since last Friday to the lowest level since October 2022. The Tech Index climbed 0.4 per cent while the Shanghai Composite Index extended a retreat by 0.7 per cent.
Alibaba Group advanced 1.9 per cent to HK$66.95 while search engine operator Baidu rallied 2.8 per cent to HK$99.60 and online game operator NetEase rose 1.7 per cent to HK$137.20. HSBC gained 0,9 per cent to HK$58.50, and Macau casino operator Sands China gained 2.4 per cent to HK$21.20.
The Hang Seng Index’s 14-day relative strength indicator fell below 30, signalling to technical traders that stocks are in oversold zone. The benchmark index has tumbled more than 10 per cent since December 31, marking the worst start to a year since 2016. The CSI 300 Index of top onshore stocks fell to near a five-year low.
Fund managers cut their allocations on Chinese stocks to the lowest net underweight in more than a year, according to a survey by Bank of America, with investors increasingly disappointed with China’s lack of ambitious stimulus plans to drive a stronger post-pandemic recovery.
In other major moves, Xinyi Solar rallied 3 per cent to HK$3.89 after its RSI reading dropped to 24 on Wednesday. Property developer New World Development added 2.2 per cent to HK$10.26 after its RSI reading fell to 28 a day earlier.
08:39
Hong Kong finance chief rules out capital gains tax for ‘foreseeable future’ for city
Hong Kong finance chief rules out capital gains tax for ‘foreseeable future’ for city
Local stocks held onto early gains even as traders abandoned bets on US monetary policy easing in March, with the odds for a 25-basis point cut falling to zero from 63 per cent overnight. Some Federal Reserve and European Central Bank officials have warned against aggressive easing bets while inflation remains elevated.
Elsewhere, two companies started trading on Thursday. Waste-treatment company Grandtop Yongxing Group jumped 44 per cent to 23.26 yuan in Shanghai and Hebei Kangnong Seed surged 71 per cent to 19.11 yuan in Beijing.
Other major Asian markets were mixed. Japan’s Nikkei 225 slipped 0.1 per cent and Australia’s S&P/ASX 200 lost 0.7 per cent, while South Korea’s Kospi rose 0.6 per cent.
