The Hang Seng Index lost 0.3 per cent to 17,349.36 at the local noon trading break. The Tech Index gained 0.4 per cent while the Shanghai Composite Index gained 0.2 per cent.
ICBC slumped 3.9 per cent to HK$3.70 and China Construction Bank lost 2.6 per cent to HK$4.44, while Bank of China weakened 1.8 per cent to HK$2.71. Alibaba Group declined 1.8 per cent to HK$80.95, Baidu retreated 1.4 per cent to HK$105.50 and Meituan lost 0.4 per cent to HK$112.50.
HSBC set aside US$1.1 billion in expected credit losses and other credit impairment charges, in line with the same quarter in 2022, including about US$500 million relating to the commercial real estate sector in mainland China. Standard Chartered booked US$294 million of impairment, a 37 per cent increase from a year earlier, including US$186 million tied to China’s commercial properties.
“Hong Kong stocks will continue to face long-term uncertainty, as it still remains to be seen how the recent supportive policies will shore up expectations of an economic recovery,” Dai Qing, analyst at Guotai Junan Securities wrote in a note on Sunday.
China Evergrande: court adjourns winding-up hearing, signals last reprieve
China Evergrande: court adjourns winding-up hearing, signals last reprieve
The Hang Seng Index has dropped 2.6 per cent this month, set for a third straight monthly loss amid China’s shaky economic recovery and rising geopolitical tensions in the Middle East. Foreign investors have sold more than 160 billion yuan of A shares in the past three months, according to Stock Connect data.
Elsewhere, Guangdong Decro Film New Materials surged 152 per cent to 79.99 yuan on its first day of trading in Shenzhen.
Major Asian markets were mixed. South Korea’s Kospi gained 0.4 per cent while Australia’s S&P/ASX 200 lost 0.8 per cent and Japan’s Nikkei 225 dropped 1.2 per cent.