The Hang Seng Index lost 0.1 per cent to 18,216.91 at the close of Thursday trading, after gaining as much as 1.3 per cent. The Tech Index rose 0.1 per cent after surging almost 2 per cent, while the Shanghai Composite Index ended little changed.
Alibaba Group lost 0.8 per cent to HK$77.30. Developer Longfor tumbled 3.7 per cent to HK$14.50 and peer Country Garden lost 2.8 per cent to HK$1.40. Macau casino operator Sands China slid 2.2 per cent to HK$24.80 while Galaxy Entertainment retreated 1.5 per cent to HK$47.80, as a rebound in gaming revenue failed to boost sentiment.Limiting losses, Tencent surged 1.5 per cent to HK$315.40 and Baidu advanced 1.8 per cent to HK$121.60. JD.com surged 3.3 per cent to HK$130 while Meituan climbed 2.4 per cent to HK$112.80.
“The question facing investors is whether the loss of economic momentum will prompt a policy response [from Beijing],” strategists at BCA Research said in a report. “Major irrigation-style stimulus is unlikely. Excesses in the property and credit markets are “structural constraints on policymakers’ willingness to stimulate aggressively.”
The Hang Seng Index slumped 8.4 per cent in May, adding to a 2.5 per cent loss in April and driving the market barometer within a percentage point of bear-market territory, or about 20 per cent slide from its January 27 peak. The Chinese currency this week slumped past 7 yuan per dollar, the weakest since late November.
Hong Kong stocks rout is about to end, say Hang Seng, HSBC asset managers
Local stocks logged early gains after a private report showed Chinese manufacturing surprisingly expanded last month. The Caixin/S&P PMI Index rose to 50.9 from 49.5 in April, beating consensus estimates of 49.5. It contrasted with an official report earlier this week showing factory activity contracted in May to the lowest since December.“Markets are clamouring for more monetary and fiscal stimulus measures because of one month’s disappointing data,” said David Chao, global market strategist for Asia-Pacific ex-Japan at Invesco. “We will likely see one more [reserve-ratio] cut and other property and auto subsidies to boost consumer sentiment.”
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Why it took China’s home-grown C919 plane 15 years to start flying passengers
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Elsewhere, Prudential slumped 2.2 per cent to HK$104.70 after skidding to a two-month low of HK$103.90. The UK insurer said chief financial officer James Turner will depart the firm after a “code of conduct” review relating to a recent recruitment, it said in a filing without elaborating on the nature of the event.Two companies began trading in mainland markets. Chip maker Shanghai New Vision Microelect closed 88 per cent higher at 21.07 yuan in Shanghai. Plastics manufacturer Jiangsu Topfly New Materials gained 59 per cent to 46.06 yuan in Shenzhen.
Major Asian markets were mixed. Japan’s Nikkei 225 added 0.8 per cent, Australia’s S&P/ASX 200 gained 0.3 per cent, while South Korea’s Kospi Index declined 0.3 per cent.
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