The Hang Seng Index fell 0.1 per cent to 18,928.02 to a one-week low on Thursday, reversing a rally of as much as 1.4 per cent. The Tech Index also surrendered gain, falling 1.2 per cent. The Shanghai Composite Index dropped 0.9 per cent.
Alibaba Group weakened 1.5 per cent to HK$89, Baidu lost 1.9 per cent to HK$139.40, while NetEase tumbled 2.8 per cent to HK$158.50. Casino operator Sands China dropped 1.4 per cent to HK$27.75 while peer Galaxy Entertainment weakened 0.2 per cent to HK$53.70.
Sunny Optical sank as much as 15 per cent to HK$66.30, the most since August 2018, before closing at HK$67.35. The company said first-half profit likely shrank by as much as 70 per cent from a year earlier to 407.4 million yuan (US$56.4 million). It makes smartphone parts for Chinese brands including Huawei, Oppo and Vivo.“We expect only piecemeal easing in the near term, before policymakers roll out more meaningful measures towards late third quarter,” economists at Bank of America said, after lowering their GDP targets for 2023 and 2024 on weak data and policy response.
Most money managers in Asia are not convinced about China’s outlook and believe Chinese stocks could re-test the 11-year low seen in October last year, the US bank said in its July survey. Asian funds turned net underweight on China for the first time this year, it showed.
Funds snub Chinese stocks with ‘net underweight’ amid economy, stimulus ills
Hong Kong stocks rose earlier, after China said it would optimise a stable, fair, transparent, and predictable development environment for the private sector and fully unleash their vitality and potential, according to an official statement on Wednesday.The city’s stock benchmark has risen 3.1 per cent since July 7, when China wrapped up a years-long crackdown on the nation’s internet-platform companies and handed down US$1 billion of fines on Ant Group and Tencent units. The recovery has been punctuated by concerns over China’s lack of forceful stimulus.“Stimulus measures so far from China have been mild and very measured, perhaps too measured for some investors,” said Tim Waterer, chief market analyst at KCM Trade. “More aggressive moves on the stimulus front is likely to be needed to lure investors back in.”
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Premier Li Qiang plays up China’s economic prospects at World Economic Forum’s ‘Summer Davos’
Premier Li Qiang plays up China’s economic prospects at World Economic Forum’s ‘Summer Davos’
Two stocks debuted on Thursday. Shanghai Chemspec Corporation jumped 38.6 per cent to 12 yuan, while Shenzhen Intelligent Precision surged 116.8 per cent to 86.01 yuan.
Major Asian markets were mixed. The Kospi Index in Korea declined 0.3 per cent, the Nikkei 225 Index in Japan retreated 1.2 per cent, while the S&P/ASX 200 Index in Australia was little changed.
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