Hang Seng Index Extends Weekly Losses to 4% and CSI 300 Index Falls 5%

Li Chen
10 Jan, 2025
Hong Kong

Stock market indexes in China and Hong Kong extended weekly losses ahead of the start of earnings season. 

The Hang Seng Index fell 0.8%, and the CSI 300 index dropped 0.7% amid weak market sentiment and a lack of visible catalysts for domestic economic growth. 

Sentiment for stocks remained cautious after policymakers failed to release concrete steps to much-touted fiscal stimulus measures and growing worries about trade ties with the U.S. 

The People's Bank of China halted the purchase of Chinese government bonds, citing strong demand from investors for bonds, a move widely seen as an attempt to shore up the weakening yuan. 

The Chinese yuan in offshore trading declined and traded around a 16-year low of 7.35 against the U.S. dollar, as Chinese exporters kept a larger share of sales in overseas accounts. 

Tech stocks remained under pressure for the second week in a row after the U.S. Department of Defense expanded its list of Chinese companies with military ties, including Tencent Holdings, Cosco Shipping, and CATL. 

 

China Stock Movers 

The Hang Seng index declined 0.8% to 19,081.48, and the mainland-focused CSI 300 index fell 0.7% to 3,750.63. 

China Life Insurance, Li Ning, CATL, and Lenovo dropped between 3% and 5% amid weak market sentiment. 

Bloks Group soared more than 45% to HK$3,750.63 after the toy maker raised HK$1.6 billion through the sale of 27.7 million in an initial public offering. 

The company priced its offering at HK $60.25 per share. 

Numans Health Food Holdings declined more than 8% to HK $0.74 after the company priced its initial public offering at HK $0.80 per share. 

The company raised gross HK$200 million and net HK$120.5 million after selling 250 million shares in its public offering. 

Suzhou Seapax Technologies jumped more than 370% to 20.72 yuan after the maker of chromatography materials priced its initial public offering. 

The company sold 49.97 million shares in its initial public offering priced at 4.32 yuan and raised gross proceeds of 215 million yuan. 

Juneway Electronic jumped 250% to 38.10 yuan after the company priced its initial public offering at 10.40 per share and raised 693 million yuan through the sale of 66.6 million shares.