Till yesterday, Hong Kong’s economic sustainability was manageable. Still, as per new sources, the stocks slipped as the money manager called for a pullback. This happened for the first time since 1996. Tradings are running slowly before the Lunar New Year holiday next week.
The Heng Seng Index fell around 1.4%, the highest in the last four weeks. Before, it pared to 0.1% at 21,672.07 at the local noon trading break. Along with that, the Tech Index declined 1.1%, and the Shanghai Composite Index added 0.1%.
With the pullback, several benchmark index’s biggest members got affected by the massive losses.
| Companies | Dropdown in percent | HK$ value |
|---|---|---|
| Alibaba Group | 1.1 | 112.90 |
| JD.com | 0.6 | 234 |
| Meituan | 1.4 | 161.30 |
| Kuaishou Technology | 5.1 | 68.80 |
Hong Kong fund managers were banking on a 5-10% retreat in Chinese equities before Lunar New Year, which falls on January 22. However, according to a survey by Bank of America, fund managers are expected to purchase the dips.
Ping An Securities said in a report-“ Hong Kong stocks will most probably switch to a consolidation pattern after the recent surge.” But, they added, “The stock pick strategy should focus on industry sentiment and individual valuations.”
As per the Bloomberg data, the calculative transactions in Hong Kong stocks amounted to approximately 7% below the 30-day average. As a result, as of the declaration, the city’s stock market will be shut for three days next week. At the same time, mainland China will be closed for the whole week.
Hong Kong citizens’ and government sentiments are attached to the Hang Seng Index growth. However, it chalked up a 50% gain from October-end.
- Published By Team Hongkong Journalist
