China Indexes Wavered; Property Developers, Oil Producers and Tech Stocks In Focus

Li Chen
05 Sep, 2024
Hong Kong

Stocks in Hong Kong and mainland China lacked direction after falling in the previous three trading sessions. 

The Hang Seng index decreased 0.6% and extended the three-day loss to over 3% after soaring 4% in August. 

The CSI 300 index traded around the flatline amid a lack of interest from retail investors on the mainland.

The August rally stalled over the last three days as worries of an economic slowdown in the U.S. resurfaced following a weak reading on the manufacturing sector. 

The latest update on the U.S. labor market also showed weakening market conditions after new job openings shrank in July to the lowest level since January 2021. 

The number of job openings declined 237,000 to 7.673 million from the downwardly revised 7.91 million in June, the U.S. Bureau of Labor Statistics reported Wednesday. 

Amid widespread belief that the Federal Reserve is likely to lower its key lending rates by at least 25 basis points at the end of a two-day policy meeting on September 18,. 

The move by the Federal Reserve would also lead to a similar rate cut in Hong Kong, as the city maintains its currency peg with the U.S. dollar. 

Property developers in Hong Kong advanced in the hopes that the interest rates are heading lower in the near future, supporting a rebound in property sales. 

 

China Stock Movers 

The Hang Seng index decreased 0.6% to 17,359.37, and the CSI 300 index edged down 0.01% to 3,251.83. 

Oil producers were in focus for the third day in a row amid weakening crude oil prices in international markets. 

Crude oil prices dropped below $70 a barrel and hovered near $69.35 amid demand growth worries in the U.S. and China and rising supply from OPEC+ countries. 

CNOOC decreased 0.7% to HK $19.74, Petro China fell 3.7% to HK $6.27, and China Petroleum and Chemical Corp. declined 6.5% to HK $4.63. 

Property developers advanced in the hopes of rate cuts in the near future. 

Sun Hung Kai Properties gained 2% to HK $75.25, Henderson Land Development increased 1.8% to HK $23.70, and CK Hutchison Holdings added 2.2% to HK $42.90. 

Tech stocks remained under pressure for the fourth day in a row amid weakness in semiconductor stocks and online platforms. 

Alibaba Group was in focus after the e-commerce platform operator said it may consider accepting payments originating on the WeChat service operated by the rival Tencent Holding. 

Tencent Holding declined 0.2% to HK $369.0, Alibaba Group decreased 0.6% to HK $79.60, JD.com 1.9% to $103.80, and Meituan fell 0.4% to HK $118.80.