HK, mainland stocks hit three-week low as traders focus on inflation risks before Fed statement while China data disappoints

17-Jun-2021 Intellasia | South China Morning Post | 5:02 AM Print This Post

Hong Kong and mainland stocks slid to a three-week low as traders lightened positions after inflation worries knocked global stocks off their record levels and fresh China data missed expectations. Angelalign Technology more than doubled in its market debut.

The Hang Seng Index retreated 0.7 per cent to 28,436.84 on Wednesday, extending a slide to the lowest level since May 24. The Shanghai Composite Index slumped for a third day, slipping 1.1 per cent to 3,518.33. Stocks on tech-heavy ChiNext board tumbled 4.2 per cent.

BYD crashed 7.8 per cent while Geely Auto lost 3.9 per cent and Great Wall Motors plunged 8.7 per cent. Developers also suffered losses with Hang Lung Properties and New World Development tumbled 1.7 per cent and 1.6 per cent respectively.

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The Hang Seng Tech Index fell 1.6 per cent, with Meituan, Alibaba and Tencent Holdings pacing decliners with 0.3 per cent to 4.8 per cent setback.

“Investors are taking a wait-and-see attitude before the Fed statement, especially when the trading volume is lighter with a drop in southbound funds,” said Kenny Tang Sing-hing, chair of the Hong Kong Institute of Financial Analysts and Professional Commentators. The market is likely to continue the current small fluctuations [before the Fed statement], with support around the 28,000 levels, he added.

China reported weaker-than-expected data, with retail sales growing by 12.4 per cent versus a consensus for a 13.6 per cent gain in a Reuters survey. Industrial production rose 8.8 per cent, trailing the 9 per cent forecast by economists.

US equities slipped from their record highs overnight while the MSCI World Index has slipped from its June 14 all-time high after a 12 per cent rally this year. government reports showed faster than expected gain in US producer price index in May, while retail sales tumbled by more than predicted 1.3 per cent.

Both came before the Federal Reserve wraps up its policy meeting this week, with markets bracing for clues on possible cutback in bond purchases.

Angelalign Technology, a Chinese dental braces maker, soared 132 per cent to HK$401, after completing its HK$2.9 billion (US$374 million) stock offering.

In the mainland, auto stocks and blue chips which were favoured by funds shed. Chongqing Changan Automobile and Great Wall Motor plummeted by the daily cap of 10 per cent.

Other new listings in mainland markets also surged. Shandong Kehui Power Automation advanced 157 per cent, Dalian Demaishi Precision Technology soared 472 per cent, while AVE Science & Technology gained 160 per cent.

https://sg.news.yahoo.com/hong-kong-stocks-extend-losses-024234753.html

 

Category: Hong Kong

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