Key Takeaways
- • The Hang Seng Index fell 2.9 per cent to 22,971.93 at the noon break on Thursday, poised for its lowest close since June 30, according to the South China Morning Post.
- • The Hang Seng Tech Index dropped 4.6 per cent, on track for a level not seen in two years.
- • Diminishing expectations of meaningful stimulus from Beijing drove the sell-off, even as recent economic data suggested China was within reach of its annual growth target.
- • Tencent Holdings and Alibaba Group Holding, the index's most valuable constituents, each fell at least 3 per cent amid sluggish Chinese consumer spending.
- • CATL extended its decline after an interim report showed slowing profit growth, and AI model developer MiniMax fell below its IPO price for the first time since its January debut.
Summary
Hong Kong stocks sold off deeper on Thursday, with the benchmark Hang Seng Index sinking 2.9 per cent to 22,971.93 at the noon break and heading for its lowest close since June 30, according to the South China Morning Post. The Hang Seng Tech Index fell 4.6 per cent and was on track for a level not seen in two years.
The decline reflected fading hopes that Beijing would introduce more substantial stimulus measures. The move came after recent economic data indicated China was within reach of its annual growth target, reducing the urgency for additional policy support.
Sluggish consumer spending in China weighed on the outlook for the country's largest internet platforms. Tencent Holdings and Alibaba Group Holding, the most valuable constituents of the Hang Seng Index, each fell at least 3 per cent. Both companies remain reliant on e-commerce as their major source of revenue, leaving their earnings prospects sensitive to weak domestic consumption.
Contemporary Amperex Technology Limited (CATL) extended its losses after an interim report showed a slowdown in profit growth. Separately, artificial intelligence model developer MiniMax fell below its initial public offering price for the first time since its debut in January.
The decline reflected fading hopes that Beijing would introduce more substantial stimulus measures. The move came after recent economic data indicated China was within reach of its annual growth target, reducing the urgency for additional policy support.
Sluggish consumer spending in China weighed on the outlook for the country's largest internet platforms. Tencent Holdings and Alibaba Group Holding, the most valuable constituents of the Hang Seng Index, each fell at least 3 per cent. Both companies remain reliant on e-commerce as their major source of revenue, leaving their earnings prospects sensitive to weak domestic consumption.
Contemporary Amperex Technology Limited (CATL) extended its losses after an interim report showed a slowdown in profit growth. Separately, artificial intelligence model developer MiniMax fell below its initial public offering price for the first time since its debut in January.
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