Investor Gloom Grip China Stocks A Day After Posting Largest Gain In Five Weeks

Li Chen
28 Nov, 2024
Hong Kong

Stocks in China and Hong Kong retreated a day after indexes surged the most in five weeks. 

The Hang Seng index dropped 1.3% and the mainland-focused CSI 300 index decreased 0.8% amid a lack of catalysts and fading investor enthusiasm. 

Benchmark indexes have declined 16% from the peak on October 7 after the monetary and fiscal stimulus measures failed to impress investors. 

Last month, Chinese lawmakers offered support to local governments with a plan to swap hidden debt of 10 trillion yuan, and local authorities lowered restrictions for new home purchases. 

However, those measures did not go far enough to boost consumption and stabilize the property market. adding to the market gloom. 

China stocks are likely to stay rangebound with a downward bias until corporate earnings show a clear trend of a rebound or the government enacts wide-ranging measures to support consumption. 

 

China Stock Movers 

The Hang Seng index decreased 1.3% to 19,344.07, and the mainland-focused CSI 300 index fell 0.8% to 3,875.99. 

Online store and platform operators were in focus amid an ongoing consumer slowdown and ahead of earnings from Meituan on Friday. 

Alibaba Group declined 2.2% to HK $83.15, Tencent dropped 0.5% to $400.60, JD.com fell 0.4% to HK $142.0, and Meituan decreased 0.3% to HK $171.80. 

Property stocks extended losses for the third week in a row after fiscal measures failed to stabilize the moribund property market. 

China Vanke Ltd. decreased 0.6% to HK $6.24, China Resources Land fell 1.5% to HK $22.90, Henderson Land Development dropped 0.4% to $24.60, and Sun Hung Kai Properties eased 0.4% to HK $77.0. 

Banks struggled to advance amid ongoing worries that the property market losses are still not fully reflected on their balance sheets. 

Bank of China declined 1.1% to HK $3.58, China Merchants Bank dropped 1.7% to HK $34.90, China Construction Bank eased 1.4% to HK $5.82, and ICBC fell 1.5% to HK $5.82. 

S.F. Holding Co. Ltd. declined 1.2% to ¥41.35, and a day ago the China's largest express delivery company listed its stock on the Hong Kong Stock Exchange and raised HK $5.83 billion in a public offering.