HONG KONG: China and Hong Kong stocks extended declines on Wednesday tracking a broader Asian sell-off, as uncertainties about economic recovery kept investors on the sidelines.
The blue-chip CSI 300 Index fell 0.5%, while the Shanghai Composite Index edged down 0.2%.
Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index fell 1.2%, respectively.
“The sluggishness in economic recovery and policy uncertainty is keeping investors cautious,” said Redmond Wong, Greater China market strategist at Saxo Markets, adding that the correction overnight in the US also weighed on regional markets.
Broader Asian shares extended a global sell-off, as market optimism about early and aggressive US interest rate cuts ebbed ahead of the release of the minutes of the Federal Reserve’s last monetary policy meeting and jobs data.
Putting together December Caixin and official PMI reflects further softness in domestic demand conditions and slowing service sector, manufacturers focus on export market competition, J.P. Morgan analysts said in a note.
Artificial intelligence-related stocks slumped 3% and info tech companies dropped 2.3% to lead the decline.
Chinese gaming stocks edged up 0.6% by midday to outperform a weak broader market, after Reuters reported China removed a gaming regulatory official, which is being seen as a step to calm the market.
But Wong said this move, together with the People’s Bank of China’s injection of funds, are not sufficient to move the needle on the big picture.
“The Hong Kong and mainland A-share markets are still in the process of finding a bottom,” he said. Hong Kong-listed tech giants tumbled 2.4%.
Comments
Comments are closed for this article.