Hong Kong stocks trade near 2-week low as deteriorating earnings weigh on sentiment

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‘Economic data is still weak for now so there’s no foundation for a reversal of the trend on the market,’ analyst says

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Screens show stock information at Exchange Square, home of Hong Kong’s bourse operator. Photo: Sun Yeung

Zhang Shidongin Shanghai

Published: 10:18am, 3 Sep 2024Updated: 4:28pm, 3 Sep 2024

Hong Kong stocks traded close to a two-week low as investors digested weak corporate earnings amid a slowdown in China’s growth.

The Hang Seng Index dropped 0.2 per cent to 17,651.49 at the close. The Hang Seng Tech Index gained 0.3 per cent, and the Shanghai Composite Index retreated 0.3 per cent.

Companies that posted disappointing results continued to weigh on the market. China Merchants Bank slid 3.1 per cent to HK$31.20, while Industrial and Commercial Bank of China lost 2.1 per cent to HK$4.28 and Bank of China fell 2 per cent to HK$3.43. Coal producer China Shenhua Energy dropped 2.3 per cent to 32.50 yuan.

Technology stocks led gainers to temper the loss on the broader market, with Alibaba Group Holding rising 0.8 per cent to HK$80.10, Tencent Holdings adding 0.1 per cent to HK$378.20 and Meituan rallying 2.2 per cent to HK$118.90.

A rebound in Hong Kong stocks has faltered after an almost 4 per cent gain in the benchmark gauge in August. The latest economic data and corporate results have failed to indicate faster economic and profit growth, with the manufacturing industry shrinking for a fourth straight month and banks and developers reeling. Still, any pullback may be limited as the Federal Reserve is likely to deliver its first interest-rate cut in four years, a move that will spur inflows to Asian markets.