China Indexes Rebound After Decline In Industrial Profit Slows In October

Li Chen
27 Nov, 2024
Hong Kong

Market sentiment in China and Hong Kong recovered after profit decline at large companies slowed in October.

The Hang Seng index increased 0.4%, and the CSI 300 index gained 0.9% following the release of industrial profits updates at large Chinese companies. 

Profits at large industrial Chinese companies declined 10% from a year ago in October to 5,868.04 billion, the National Bureau of Statistics reported Wednesday. 

The annual profit decline slowed from a 27% fall in the previous month, amid uneven economic recovery, a depressed property market, and weak consumer demand. 

In the first ten months of the year to October, profit decline accelerated to 4.3% from 3.5% in the previous period. 

Profits at the state-owned companies declined 8.2% from a 6.5% fall in the period between January and September, while at the private sector companies, they fell at a much slower pace of 1.3% from 9.6% in the period ending in September. 

 

China Stock Movers 

The Hang Seng index increased 0.4% to 19,239.85, and the CSI 300 index advanced 0.9% to 3,875.78. 

Chow Tai Fook Jewellery Group Ltd. increased 5.4% to HK $7.23, and the retailer announced a stock repurchase plan of up to HK $2 billion or $257 million. 

Record gold prices negatively impacted the demand for high-end jewelry. Same-store sales were down 25.4% at mainland China locations and fell 30.8% in Hong Kong and Macau.

The retailer said revenue in the six-month period to September declined 20% to HK $39.4 billion from $49.5 billion, net income attributable to shareholders fell 22% to HK $2.5 billion from HK $4.5 billion, and diluted earnings per share decreased to 25 HK cents from 46 HK cents a year ago. 

The company lowered its interim dividend to HK 20 cents from HK 25 cents a year ago. 

Meituan increased 2.7% to HK $168.70 ahead of the company's financial results on Friday, and the shopping platform operator extended year-to-date gains to 112%. 

Real estate developers in mainland China and Hong Kong traded mixed but retained a downward bias amid a lack of catalyst. 

China Vanke decreased 0.7% to HK $6.04, China Resources Land fell and edged up 0.9% to HK $22.85, New World Development edged up 1% to $6.79, Sun Hung Kai Properties advanced 1.3% to $76.65, and Henderson Land increased 1% to HK $24.50. 

S.F. Holding Co. Ltd. edged up a fraction to HK $34.45 after the express delivery company priced its initial public offering at HK $34.30 per share and sold 170 million shares. 

China's largest courier company raised HK $5.83 billion, the second largest listing in Hong Kong this year, and the company eyes international expansion.