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Hong Kong stocks slip to 4-week low as BlackRock loses conviction on China market, Fed decision looms
- Stocks declined to the lowest level since August 23 as investors waited for the Fed’s rate decision later today
- BlackRock strategists downgraded Chinese equities and their emerging-market peers on Monday, citing the property market slump and policy inadequacy
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Hong Kong stocks slipped to a four-week low as more strategists turned bearish on the market outlook amid China’s housing slump and policy disappointment. Prices remained lower before an expected pause in the US policy tightening cycle.
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The Hang Seng Index fell 0.6 per cent to 17,885.60 at the closing of Wednesday trading, the lowest level since August 23. The Tech Index declined 1.6 per cent while the Shanghai Composite Index eraseg gains to lose 0.5 per cent.
Tencent weakened 1 per cent to HK$309.20, Alibaba Group fell 0.4 per cent to HK$84.50, NetEase slipped 3.4 per cent to HK$154.70, and Meituan lost 2.4 per cent to HK$118.80. Property developer Longfor fell 2.1 per cent to HK$15.18 while Wuxi Biologics tumbled 3.9 per cent to HK$41.80.
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Limiting the declines, oil-related stocks advanced on the outlook for crude prices after a recent surge towards US$100 a barrel. PetroChina climbed 1.6 per cent to HK$5.83 while ENN Energy jumped 1.9 per cent to HK$63.50.
Strategists at BlackRock Investment Institute this week called out China’s weak stimulus response to recharge the struggling economy. They downgraded their tactical view on Chinese equities to neutral from overweight, overturning their buy conviction since February.
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