Hong Kong stocks slide as China begins tone-setting economic conference

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Investors are hungry for more detailed policy measures after a readout from a Politburo meeting earlier this week hinted at broader stimulus

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People passed through Exchange Square in Hong Kong. Photo: May Tse

Zhang Shidongin Shanghai

Published: 10:32am, 11 Dec 2024Updated: 4:49pm, 11 Dec 2024

Hong Kong stocks dropped as China’s top leaders kicked off a key meeting that investors believe will set the tone for the nation’s economy next year.

The Hang Seng Index fell 0.8 per cent to 20,155.05 at the close, while the Hang Seng Tech Index slumped 1.3 per cent. On the mainland, the CSI 300 Index slipped 0.2 per cent and the Shanghai Composite Index added 0.3 per cent.

All eyes are on a two-day economic work conference, which started Wednesday, as investors are eager for more detailed policy measures after a readout from a Politburo meeting earlier this week hinted at a greater stimulus efforts to improve growth. Sentiment cooled after the initial excitement for policy hopes, as investors took some profit to see how Beijing would follow up with specific measures.

“For a sustained rally in the Hong Kong stock market, we want to see forceful measures, effective execution and clear signs of China breaking through the deflation-debt spiral,” said Edith Qian, an analyst at China Galaxy Securities International in Hong Kong. “The upcoming central economic work conference is likely to further enhance market sentiment in the near term. We also expect the introduction of more concrete measures to follow through on the outlined policy directions in the coming months.”

Among the most substantial decliners on the Hang Seng Index, machine tool maker Techtronic Industries slumped 3.6 per cent to HK$109.10 and real estate developer Sun Hung Kai Properties fell 2.6 per cent to HK$76.50. JD.com lost 2.8 per cent to HK$149 and Meituan also sank as much to HK$167.

Fosun Tourism Group jumped 80 per cent to HK$7.21, achieving its largest-ever gain, following the release of a go-private plan where the offer price is 95 per cent higher than its stock’s last close.