Hong Kong Stock Market Declines Amid Poor Results from Chinese Tech Giants

Hong Kong Stocks Decline Due to Disappointing Earnings

The Hong Kong stock market faced a setback on Friday, with Hong Kong stocks dragged lower by disappointing earnings from key Chinese stocks, particularly tech giants like NetEase and Baidu.

Market Overview

As of 10.16 am local time, the Hang Seng Index dropped 0.7%, settling at 17,519.13. This decline jeopardizes the chance for a third consecutive weekly gain. The Tech Index retreated by 1.9%, and the Shanghai Composite Index also saw a minor loss of 0.2%.

Impact of the Federal Reserve

With heightened focus on Jerome Powell's upcoming speech at the Jackson Hole symposium, traders are eager for hints regarding the Federal Reserve’s approach to interest rate adjustments. Recent mixed economic data has raised doubts about a forthcoming rate cut.

Major Stock Movements

• NetEase experienced a significant drop of 13.4%, selling at HK$123.80, following disappointing second-quarter earnings.
• Orient Overseas International decreased by 7.8%, falling to HK$105.90 after a 26% decline in its interim earnings.
• Baidu lost 6%, trading at HK$81.25, as its revenue remained flat in the second quarter.
• Meituan also declined by 1.6%, priced at HK$107.30.

Conversely, the Alibaba Group Holding improved by 0.4% to HK$81.95, announcing its move towards dual-primary listing status on the Hong Kong stock exchange, allowing access for mainland Chinese investments.

Ping An Insurance noted a 1.5% increase to HK$34.80, reporting its best half-yearly performance in four years. Meanwhile, Country Garden Services saw a slight decline of 3.4% to HK$4.01.

Regional Market Trends

• Japan’s Nikkei 225 Index slipped by 0.3%
• South Korea’s Kospi experienced a 0.5% decline
• Australia’s S&P/ASX 200 saw a dip of 0.4%

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