Hang Seng Index Dropped to One-Month Low After Crude Oil Prices Signaled Global Weakness

Li Chen
11 Sep, 2024
Hong Kong

Stocks in Shanghai and Hong Kong dropped following renewed worries about the health of the economy after crude oil prices dropped 4%. 

The Hang Seng index dropped 1.4% and the mainland-focused CSI 300 index fell 0.4% as investors struggled to understand the latest decline in oil prices. 

Crude oil prices fell below $69 a barrel amid worries of lack of demand growth from the U.S. and China, and the OPEC trimmed its global demand growth outlook for 2024 and 2025. 

Crude oil prices are now trading at a three-year low after OPEC lowered its global demand growth estimate for 2024 by 80,000 barrels per day to 2 million bpd. 

The lowered demand growth primarily reflected demand weakness in China, as the second-largest economy relied more on renewable energy and electric vehicles. 

Market sentiment in Hong Kong and Shanghai was dented after consumer price and producer price inflation data confirmed the ongoing demand weakness. 

 

China Stock Movers 

The Hang Seng Index dropped 1.4% to 16,992.42, and the mainland-focused CSI 300 index fell 0.4%. 

CNOOC fell 3.6% to HK $18.46, PetroChina decreased 4% to HK $5.46, and China Petroleum and Chemical dropped 4% to HK $4.24. 

Wuxi AppTec rose 4.8% to HK $33.75 after the company said it plans to buyback stocks worth one billion yuan. 

Wuxi Biologics rose 2% to HK $11.12. 

Li Ning Co. Ltd. dropped 6.8% to HK $12.64 after Citigroup lowered its opinion on stock to "neutral" from "buy" and lowered its price target by 27%. 

Flaircomm Microelectronics opened more than 60% on its first day of trading to 65.89 yuan in Shenzhen. 

Tech stocks were also under pressure and led the declines in Hong Kong. 

Alibaba Group declined 0.9% to HK $80.95, Tencent Holdings fell 0.5% to HK $366.60, and Meituan decreased 0.8% to HK $117.90.