Sentiment on Hong Kong stocks took a beating this month, with a slew of headwinds for China’s growth outlook
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.
Geely advanced 0.6 per cent to HK$13.86 after chairman Li Shufu bought 24.20 million shares of the carmaker for HK$316 million (U$40.6 million) this week.
Meituan slid 2 per cent to HK$168.70. Third-quarter revenue likely increased 20 per cent from a year earlier, according to the estimates of analysts tracked by Bloomberg.
NWD tumbled 6 per cent to HK$6.43 before trading was halted at 2.32pm pending an announcement. The Hong Kong-based property developer is expected to name Echo Huang Shaomei as CEO, replacing Eric Ma Siu-cheung, who took up the post in late September, according to people familiar with the matter. The stock will be removed from the Hang Seng Index next month.
For the month, NWD was the worst performer in the Hang Seng gauge with an 18 per cent decline, followed by Chinese EV maker Li Auto’s 15 per cent loss and Tingyi’s 14 per cent drop. Chinese car dealer Zhongsheng Group Holdings was the biggest gainer, jumping 29 per cent for the month.
Three companies made their debuts on Friday. Mokingran Jewellery Group, a jewellery producer, rose 7.5 per cent from its offer price to HK$12.90 in Hong Kong. Electronics maker Sheng Ye Electric surged 406 per cent to 46.14 yuan in Beijing, while chipmaker Maxio Technology jumped 353 per cent to 50.98 yuan in Shanghai.
Other major Asia-Pacific markets edged lower. Japan’s Nikkei 225 slipped 0.4 per cent after inflation accelerated at a higher-than-expected pace, South Korea’s Kospi retreated 2 per cent and Australia’s S&P/ASX 200 lost 0.1 per cent.