HK stocks slump as January bull run triggers caution and CNOOC exits MSCI indices while mainland funds taper purchases

23-Jan-2021 Intellasia | South China Morning Post | 6:02 AM Print This Post

CNOOC plunged 5.6 per cent to HK$7.80, the most since November 30, after index compiler MSCI decided to delete the stock from its global and China indices. The company is a unit of China’s third-largest oil explorer China National Offshore Oil Corp, one of the Chinese companies sanctioned by the Trump administration.

CNOOC was also one of the top buying targets of mainland mutual funds on the Stock Connect scheme over the past two weeks, according to exchange data.

Xiaomi, like CNOOC a sanction target and a beneficiary of mainland fund buying, shed 3.7 per cent to HK$29.80. Alibaba, which owns the South China Morning Post, declined 3.1 per cent to HK$250.60.

Mainland funds have tempered their enthusiasm by scaling back net purchases of Hong Kong stocks on the southbound channels, according to stock exchange data. Net inflows shrank to HK$9.37 billion (US$1.2 billion) on Friday, slipping for a third day from a record HK$26.3 billion on Tuesday

Markets around the Asia-Pacific region weakened. The S&P/ASX 200 in Australia dropped 0.3 per cent and the Nikkei 225 eased 0.4 per cent. South Korea’s Kospi Index declined 0.6 per cent.

Concerns about Covid-19 infections remain high. China reported 103 new local cases on January 21, with outbreaks lingering in northern Hebei and Heilongjiang provinces. President Joe Biden, meanwhile, said the US could see another 100,000 fatalities over the next month.

New listings soared. In Shenzhen, Sinostar Cable more than tripled to 12.96 yuan, Sanyou Corp more than doubled to 53.76 yuan. Shanghai Hiuv New Materials also more than tripled to 218 yuan in Shanghai.

https://sg.news.yahoo.com/hong-kong-stocks-slump-10-025003627.html

 

Category: Hong Kong

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