Indexes In Shanghai and Hong Kong Fail to Stay Above Flatline

Li Chen
06 Aug, 2024
Hong Kong

Stocks in Hong Kong and Shanghai rebounded after market sentiment stabilized, and investors looked forward to the release of corporate results. 

The Hang Seng and the CSI indexes rebounded in early trading after Japan's Nikkei 225 stock average recouped most of the historic losses in the previous session amid panic selling. 

But market indexes turned lower after a weak domestic economic outlook and earnings growth uncertainty overshadowed market sentiment in Hong Kong and Shanghai. 

Investors looked forward to the release of official consumer price inflation and producer price inflation data on Friday. 

Economists are estimating consumer price inflation to rebound by 0.3% in July, but wholesale deflation will persist for the 22nd month in a row and show a decline of 0.9%. 

The Hang Seng index has erased about 15% of its gains from the peak in May, and the benchmark is struggling near a three-month low as foreign investors lighten their holdings and domestic investors stay on the sidelines. 

In addition, China's policymakers are struggling to devise market reform amid weak consumer confidence and prolonged residential market decline as the world's second-largest economy labors under record-high government debt. 

Across wider Asia, market indexes in Mumbai advanced 0.7%, in Tokyo rebounded 9.6%, in Seoul gained 4.5%, and in Sydney jumped 0.4%. 

 

China Stock Movers 

The Hang Seng index fell 0.2% to 16,668.21, and the CSI 300 index declined 0.5% to 3,327.05. 

Property developers were in focus ahead of the release of their quarterly results. 

China's top 100 residential real estate developers reported home sales of 1.85 trillion yuan, a 40% decline in sales in the first half, according to China Real Estate Information Corp. 

But the supply of new homes is still rising at a pace faster than the rate in 2016, indicating that the industry may take more than a decade to rebound from the current slump. 

China Vanke increased 1.2% to HK $4.08, China Resources Land gained 1.1% to HK $22.70, Longfor Group was unchanged at HK $9.07, and China Overseas Land & Investment inched higher 0.3% to HK $12.56. 

Alibaba Group jumped 2% to HK $75.65, Meituan Holding declined 0.4% to $106.30, Baidu decreased 1.4% to HK $79.90, and Tencent Holdings dropped 1.6% to HK $350.80.