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Hong Kong stocks waver near 4-week low as CNOOC benefits from oil rally, Alibaba and WH Group suffer on Shanghai lockdown

  • Stocks struggled to break out from a four-week low as Shanghai infections hit a record, dimming hopes for a quick exit from a citywide lockdown
  • US consumer prices jumped in March by the most in four decades, further entrenching Fed tightening bias

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A woman walks past a sign showing the Hang Seng Index in Hong Kong on April 11. Photo AFP
Zhang Shidong
Hong Kong stocks traded near a four-week low after new Covid-19 cases jumped to a record in Shanghai, denting hopes for a quick exit from two weeks of citywide lockdown. Faster US inflation also fuelled more policy tightening bets, hurting risk appetite.
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The Hang Seng Index swung to a 0.3 per cent gain to 21,374.37 on Wednesday, after losing as much as 0.8 per cent. Volatility this week reached the highest in about a month. The Tech Index gained 0.4 per cent and the Shanghai Composite Index fell by 0.8 per cent.

CNOOC and PetroChina surged after crude oil futures topped US$100 a barrel as Russia vowed to press on with its Ukraine invasion. Alibaba Group Holding dropped to a one-month low. WH Group, WuXi Biologics and Anta Sports fell at least 2 per cent.

“There’s a lack of confidence in the market given the economic damage from lockdown measures imposed in many parts across China,” Ping An Securities said in a report on Wednesday. “Hong Kong’s market would be no exception to wild price swings, even if the valuation is already beaten down.”

Shanghai recorded 26,330 infections on Tuesday, a new daily record, according to the data released by the health authorities on Wednesday. The financial hub, home to Tesla’s Gigafactory, contributed to more than 95 per cent of current cases nationwide. The city of 25 million people has been in a two-phased lockdown since March 28.

The crisis reinforced expectations that China’s growth will be derailed as its zero-Covid policy and sporadic lockdowns forced factories to shut down while transport disruptions upended supply chains. Pimco is the latest to trim its GDP forecast for 2022.

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Shanghai’s citywide Covid-19 lockdown spurs race to stockpile food across China

Shanghai’s citywide Covid-19 lockdown spurs race to stockpile food across China

Alibaba, the owner of the newspaper, slipped 0.5 per cent to HK$98.50, near the lowest close since March 16. WH Group, China’s biggest pork processing firm, tumbled 2.1 per cent to HK$5.05 and WuXi Biologics slid 2 per cent to HK$61.40.

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