Hong Kong stocks mark worst year in a decade, China edges up

SHANGHAI: Hong Kong stocks rose on Friday but marked their worst yearly performance in a decade following China's regulatory crackdowns on tech firms, while mainland-listed equities edged up thanks to gains in the new energy and property sectors.

The CSI300 index was unchanged at 4,923.30 points at the end of the morning session, while the Shanghai Composite Index gained 0.4% to 3,632.14 points.

** For 2021, the CSI300 index lost 5.5% while the Shanghai Composite index gained 4.6%.

** Turnover in China's A-share markets is set to surpass a record created in 2015, while the total assets under management (AUM) of the country's mutual fund industry reached 25.3 trillion yuan ($3.97 trillion) this year, hitting a record high.

** Boosting sentiment, the chairman of China's securities regulator said the country will stabilize and reform its capital markets next year.

** China's factory activity and services sector both edged up in December, even amid local COVID-19 outbreaks.

** Real estate developers gained 2.5% on Friday, after a central bank official said mergers and acquisitions in the property market will help firms lower debt.

** New energy shares rose 2.1%, with the photovoltaic industry up 3.6%. Agriculture and machinery stocks added 2% and 1.5%, respectively.

** However, gains were capped by losses in consumer staples, with liquor makers down 1.7%.

** The Hang Seng index added 1.2% to 23,397.67 points, but slumped 14.1% this year. The Hong Kong China Enterprises Index gained 1.7% to 8,236.35, but posted the biggest annual drop since 2009 with a 23.3% plunge.

** Tech giants surged 3.6%, tracking overnight gains in their Wall Street-listed shares, with the NASDAQ Golden Dragon China Index soaring the most since November 2008.

** However, the tech index has plunged more than 30% this year amid Beijing's sweeping crackdown.

** Outlook for the battered sector remained divergent, with some analysts seeing current valuations attractive while others thought the regulatory uncertainty remained an overhang.

** Healthcare gained 3.4% on the day, but lost 27.7% in 2021.

** Mainland developers listed in Hong Kong gained 1%, with Evergrande up 6%.