Hong Kong stocks slide after posting biggest gain in 5 weeks
Stocks struggle to emerge from a slump that has dragged benchmark down more than 15 per cent from this year’s high in October
The Hang Seng Index sank 1.2 per cent to 19,366.96 at the close, while the Hang Seng Tech Index slumped 1.5 per cent. On the mainland, the CSI 300 Index slid 0.9 per cent and the Shanghai Composite Index retreated 0.4 per cent.
Hong Kong stocks are struggling to emerge from a slump that has dragged the benchmark down by 16 per cent from an October high amid China’s unimpressive fiscal stimulus moves and Donald Trump’s looming tariff plans. The benchmark rallied more than 2 per cent on Wednesday on expectations for more forceful policies from Beijing to prop up the economy. An annual economic work conference is due next month, where President Xi Jinping and other top officials will gather to set the stage for next year’s major policies.
“The market is driven by policies. If there’s incremental positive policies coming out, such as stabilising the property market and boosting consumption, that’ll fix market sentiment,” said Melody Lai, an analyst at SPDB International in Hong Kong. “Before the roll-out of such policies, stocks will be rangebound and opportunities will only come from individual sectors and stocks.”
