Hong Kong stocks posted a second consecutive monthly loss as investors grappled with their disappointment in China’s fiscal stimulus plans and the prospect of fresh tariffs from the Trump administration.
The Hang Seng Index rose 0.3 per cent to 19,423.61 at the close. The benchmark dropped 4.4 per cent for the month following a 3.9 per cent drop in October. The Hang Seng Tech Index gained 1.1 per cent. On the mainland, the CSI 300 Index climbed 1.1 per cent and the Shanghai Composite Index added 0.9 per cent.
Geely Automobile Holdings advanced after its chairman increased his stake in the company.
Meituan, China’s largest on-demand delivery firm, dropped ahead of its quarterly earnings release later on Friday.
New World Development (NWD) slumped before trading was suspended after the Post reported its CEO would step down just two months after being appointed.
Sentiment on Hong Kong stocks took a beating this month, with a slew of headwinds for China’s growth outlook. Investors were disappointed by Beijing’s plan to issue special government bonds to help local governments get their debts under control. Days later, Donald Trump won the US presidential election and earlier this week, he
said he would impose an additional 10 per cent tariff on goods from China as well as a 25 per cent levy on all imports from Canada and Mexico.
“We expect that more headwinds on growth could come from the external environment with tariffs, a weaker currency and geopolitical concerns,” said Laura Wang, a strategist at Morgan Stanley in Hong Kong.
Market sentiment may sour further if earnings forecasts continued to be reduced, the yuan depreciates and US-China tensions escalate, she said.
