Hong Kong stocks edge lower as 3 companies start trading on city’s exchange
Traders await greater clarity on stimulus measures from Beijing
The Hang Seng Index fell 0.2 per cent to 20,041.42 at the close, while the Hang Seng Tech Index dropped 0.8 per cent. On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index added 0.2 per cent.
Investors are waiting for more signals on the implementation of stimulus measures after top officials pledged a major policy shift for next year. China still has room to cut the reserve requirement ratio for banks as it is higher than what is prevailing in other global economies, the People’s Daily reported, citing central bank governor Pan Gongsheng. Meanwhile, an uptick in US Treasury yields has reduced the appeal of stocks in Asia and other emerging markets, spurring possible outflows. The 10-year Treasury bond now yields around 4.6 per cent, nearing the highest point of the year.
“On the backdrop of the rising US Treasury yield, the valuations of Hong Kong stocks seem to be fair,” said Wang Xueheng, an analyst at Guosen Securities in Beijing. “On the other hand, the earnings forecasts have yet to be lifted and that’ll continue to curb the risk appetite. We advise staying on the sidelines for now.”
Economic data was also in focus. China is expected to release an official purchasing managers’ index report for the manufacturing sector on Tuesday. The reading was expected to stay at 50.3 in December, above the 50 line that divides expansion and contraction for a third straight month, according to estimates collected by Bloomberg.
