HK stocks drop by most in four weeks as Anta placement, Covid-19 cases roil markets and tech losses deepen

23-Apr-2021 Intellasia | South China Morning Post | 5:02 AM Print This Post

Hong Kong stocks tumbled, snapping a three-day advance, as a discounted stock placement by Anta Sports Products by a major shareholder and rising Covid-19 cases roiled regional markets.

The Hang Seng Index lost 1.8 per cent to 28,621.92 at the close of trading on Wednesday, set for the biggest one-day pullback since March 24. The gauge had risen in the past three days to a four-week high. The Shanghai Composite Index was little changed at 3,472.93.

Anta Sports Products slumped 7.7 per cent to HK$131.30, the lowest level since April 9 and the by the most in more than a year. Anta International, which owns 50.8 per cent of the Chinese apparel maker, will sell 88 million shares or a 3.26 per cent stake at HK$131.48 each, according to an exchange filing on Wednesday. That is a 7.5 per cent discount to its last traded price on Tuesday.

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The Hang Seng Tech Index declined 1.5 per cent. Kuaishou Technology lost 3.7 per cent to HK$237, the lowest since its February 5 debut. Tencent Holdings fell 2.2 per cent to HK$609. lost 3.6 per cent to HK$287.20 as concerns about regulatory risks persisted.

Coronavirus infections soared in India. New cases reached 294,000 on Tuesday, the second highest daily record among all nations. In Japan, Tokyo and Osaka governors have requested the government to reimpose a state of emergency to stem the outbreak.

In Hong Kong, tourism and casino stocks slipped. Ctrip declined 2.4 per cent, China Travel International Investment declined 2.2 per cent, and Macau casino operator Galaxy Entertainment slid 2.4 per cent.

Stocks in key Asia-Pacific markets also slumped, with benchmarks in Australia, South Korea and Japan losing by as much as 2 per cent. They followed overnight declines in The declines in US equities as the S&P 500 and Nasdaq slipped by more than 0.7 per cent.

Losses came as investors worried about possible move by the Federal Reserve to dial back monetary easing policies to rein in rising inflation. The Fed will not seek for an inflation above 2 per cent for a prolonged period, according to a Reuters report.

“Market’s interpretation is that it indicates that the Fed would end the monetary easing in advance, maybe in the second half it will shrink the bond purchase scale, and next year it may increase interest rate,” said Alan Li, portfolio manager at Atta Capital in Hong Kong. He also noted lingering concerns about China’s antitrust clampdown on internet companies.

Medical beauty stocks were a bright spot. Raily Aesthetic Medicine soared by 35.8 per cent to HK$0.55 in Hong Kong. On the mainland, Lancy Group, a conglomerate with business in medical beauty, surged by the daily cap of 10 per cent. Imeik Technology Development rose by 9.6 per cent.

Ping An Bank gained 6.1 per cent. Revenue rose 10.2 per cent to 41.8 billion yuan and net profit advanced 18.5 per cent to 10.1 billion yuan in the first quarter, it said after the market closed on Tuesday.


Category: Hong Kong

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