Hong Kong stocks weaken amid earnings caution, property sector rebound triggered by state support expectations

Hong Kong stocks weaken amid earnings caution, property sector rebound triggered by state support expectations

14 Mar Hong Kong stocks weaken amid earnings caution, property sector rebound triggered by state support expectations

Posted at 03:04h in Asia by

Hong Kong stocks retreated as the mood turned cautious ahead of earnings announcements with more than 20 companies, which comprise the Hang Seng index, due to unveil results over the next week.

But the benchmark remains within striking distance of a three-month high, as sentiment received a boost from comments by Premier Li that China’s technological innovation push will spur an economic recovery.

The Hang Seng Index edged down less than 0.1 per cent to 17,078.54 as of 10.48am local time, close to its highest since November 28. The Hang Seng Tech Index dropped 0.6 per cent and the Shanghai Composite Index added 0.2 per cent.
Gold producer Zijin Mining Group surged 6.8 per cent to HK$15.96 as spot prices of the precious metal traded near record highs. Baidu, which operates ChatGPT-like chatbot powered by artificial intelligence (AI), added 0.7 per cent to HK$104.90 after Premier Li Qiang underlined the importance of tech innovation, during a visit to the company’s facilities.

Chinese property developers’ shares rebounded, with Longfor Group rallying 4.3 per cent to HK$11.16 and China Resources Land gaining 3.1 per cent at HK$25.35.

Premier Li visited Baidu and chip equipment maker Naura Technology Group in Beijing, China’s state broadcaster CCTV reported on Wednesday, in signs that top leaders are paying more attention to the tech industry after President Xi Jinping’s spoke about promoting “new quality productive forces” – a reference to Beijing’s ambitious plan to upgrade the economy with domestic technology.

Artificial intelligence (AI) is an important driver for new productive forces and forward-looking plans should be mapped out for accelerating tech innovation, Li said.

The risks and rewards as China makes a big push for science and tech

Elsewhere, AIA Group slipped 1.5 per cent to HK$63.90 after the insurer reported full-year profit for 2023 which was in line with analysts’ estimates.

Other major Asian markets were mixed. Japan’s Nikkei 225 slipped 0.4 per cent and South Korea’s Kospi rose 0.5 per cent, while Australia’s S&P/ASX 200 was little changed.

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