Hong Kong Stock Market Sees Hang Seng Index Pullback Amid China Economic Concerns
Hong Kong Stock Market Faces Decline
Hong Kong stocks fell for the first time in seven days as the US$3 trillion market rally driven by China’s stimulus injection showed signs of exhaustion. The Hang Seng Index slipped 1.8 percent at 9.40 am local time to 22,038.79, halting a record-setting surge since China unveiled its rescue plans on September 24.
Market Performance and Key Indicators
- The Tech Index tumbled 3.7 percent.
- E-commerce platform operator Alibaba Group Holding lost 1.8 percent to HK$113.
- Peer JD.com retreated 4.6 percent to HK$176.50.
- Search engine operator Baidu declined 1.9 percent to HK$113.
- Property developer Longfor slumped 7.6 percent to HK$17.34.
- China Resources Land slid 3.6 percent to HK$30.50.
The Hang Seng Index’s 14-day relative strength reading zoomed past 90 this week, exceeding the 70-point threshold that technical traders rely on as a danger sign.
Nomura analysts warned of a potential correction, recalling the dramatic bubble burst in 2015, and emphasized that a more cautious evaluation is necessary as China’s current economic fundamentals remain weak.
Insights on Regional Markets
- Japan’s Nikkei 225 Index rallied 2.6 percent.
- Australia’s S&P/ASX 200 Index declined 0.1 percent.
- South Korea’s markets remain closed for a public holiday.
For more insights and updates, stay tuned.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.