SHANGHAI: Hong Kong stocks reversed earlier gains and ended lower on Monday, with optimism over Beijing’s policy easing offset by concerns over the health of China’s property sector, as Shimao Group tumbled while China Evergrande Group hit fresh low.
The Hang Seng index fell 0.2% to close at 23,954.58, while the China Enterprises Index lost 0.3% to 8,551.14.
The market had risen in morning trading, bolstered by stimulus hopes after China’s top leaders vowed to prioritise economic stability in 2022.
China’s annual Central Economic Work Conference that ended on Dec. 10 concluded that the country will cut tax and fees, front-load infrastructure investment, and step up cross-cyclical policy adjustments next year to keep growth within a reasonable range.
But the bullish mood faded in the afternoon trading, with concerns over China’s indebted property sector heightened by slumps in Shimao’s shares and bonds.