Hong Kong stocks slip on weak Chinese corporate earnings, with Wuxi Apptech, Wuxi Biologics, Xpeng leading decline

The Hang Seng Index declined 0.7 per cent to 16,628.48 as of 10.05am local time. The Tech Index lost 1.1 per cent and the Shanghai Composite Index lost 0.2 per cent.

Wuxi Apptech tumbled 7.1 per cent to HK$39.70, the lowest level in over a month, after the company gave downbeat 2024 guidance due to “uncertainties in external environment”. Analysts at Nomura and Goldman Sachs slashed the price target to reflect the souring prospects. Wuxi Biologics slumped 6 per cent to HK$13.86.

China Unicom tumbled 1.2 per cent to HK$5.49, smartphone maker Xiaomi retreated 0.5 per cent to HK$14.86 and EV maker Xpeng slumped 5.8 per cent to HK$38.15 before their report cards later today.

So far, 126 companies accounting for 26 per cent of MSCI China’s market capitalisation have reported fourth quarter earnings, and average net income has climbed 14 per cent year on year, compared with a 20 per cent jump in Asia excluding Japan, according to Goldman Sachs.

The Hang Seng Index has declined 3.1 per cent after touching a three-month high last week, as China’s rate hold decision, persistent property market downturn and weak corporate earnings hurt risk appetite and prompt traders to take profit. Sentiment remains cautious ahead of the Fed’s meeting this week when traders will get more information about the rate trajectory.

Asian stocks mostly traded lower. Japan’s Nikkei 225 lost 0.8 per cent, South Korea’s Kospi tumbled 1.3 per cent, and Australia’s S&P/ASX 200 declined less than 0.1 per cent.