China Indexes Traded In Tight Range, HSBC Announced $3 Billion Stock Repurchase Plan, Sinopec Earnings Declined

Li Chen
29 Oct, 2024
Hong Kong

Market indexes in China and Hong Kong fluctuated between gains and losses amid mixed market sentiment as investors awaited details of possible fiscal measures and reviewed the latest batch of earnings. 

The Hang Seng index advanced 0.4%, but the mainland-focused CSI 300 index dropped 0.7% after investors stayed on the sidelines ahead of the National People's Congress' standing committee's meeting next week. 

Investors widely anticipate the approval of a higher budget deficit, paving the way for the government to issue long-term bonds worth between 2 trillion yen and 4 trillion yen. 

The central government plans to disburse funds to local governments to support the completion of residential property projects and revive property market transactions after falling for four years in a row. 

China's stock market indexes have soared as much as 40% over the five-week period to the first week in October after the People's Bank of China announced larger-than-expected monetary stimulus and political leaders signaled additional fiscal measures to bolster consumer confidence. 

However, corporate earnings have lagged market expectations, and results are not likely to improve for at least another three quarters as the fiscal and monetary stimulus measures trickle down through various sectors of the economy. 

Market indexes in Hong Kong and mainland China may face excessive volatility as euphoric investors scale down their expectations and foreign investors lose their patience with earnings growth and lackluster economic growth. 

 

China Stock Movers 

The Hang Seng index increased 0.4% to 20,678.97, and the mainland-focused CSI 300 index decreased 0.7% to 3,936.41. 

Sinopec dropped 2.7% to HK $4.39 after the largest oil refiner in China said low demand and an economic slowdown knocked the third quarter's profit down by 55% to 8.03 billion yuan, or $1.1 billion. 

Following Sinopec's results, CNOOC Ltd. decreased 1.9% to HK $18.36 and PetroChina fell 2.8% to HK $5.77. 

WuXi AppTec rose 1.5% to HK $53.55 after the biotech company reported a 2% decline in revenue to 10.5 billion yuan, but surpassed analysts' estimates. 

HSBC Holdings increased 3.4% to HK $71.40 after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter. 

Revenue increased 5% to $17.21 billion, and net income advanced 9% to $6.13 billion.