China, HK stocks decline as investors eye Unitree IPO; property sector weighs

HONG KONG: China and Hong Kong stocks fell on Friday, pressured by weakening liquidity ahead of robot maker Unitree’s high-profile Shanghai IPO and contraction in property stocks.

China’s blue-chip CSI300 Index edged down 0.1% by the lunch break, while the Shanghai Composite Index dipped 0.2%.

Hong Kong benchmark Hang Seng declined 0.9%.

Analysts said caution ahead of interim earnings results kept investors on the sidelines, while the Unitree IPO drained some liquidity from the market.

In A-shares, real estate and healthcare sector led the decline, while communications and rare-earth shares outperformed.

In Hong Kong, property giant CK Asset lost more than 7% after the firm declared no special dividend despite strong mid-term earnings.

China’s widening cross-border tax collection has also weighed on sentiment, market participants said.

“Hong Kong financials have come under pressure following news that China may impose taxes on offshore insurance income, raising concerns over potentially tighter controls on offshore investments from mainland China,” Kelly Chung, chief investment officer for multi-assets at Value Partners, said in a note.

For both China and Hong Kong, worsening domestic demand and concentrated positioning remain headwinds, she added.

The smaller Shenzhen index was down 0.09%, the start-up board ChiNext Composite index was higher by 0.65% and Shanghai’s tech-focused STAR50 index was down 0.57%.‑Reuters