The Hang Seng Index dropped 0.1 per cent to 16,334.37 at the close, extending to 3 per cent the loss for the week. The Hang Seng Tech Index lost 0.4 per cent and the Shanghai Composite Index added 0.1 per cent.
Online travel agency Trip.com Group rallied 1.8 per cent to HK$260.80 on optimism about travel demand, after Singapore announced it will allow Chinese tourists to enter the country without visas. New World Development added 0.2 per cent to HK$11.02 after its founder, billionaire Henry Cheng’s family, increased its stake in the Hong Kong-based developer. Alibaba Group climbed 1.2 per cent to HK$70.50 and e-commerce peer JD.com advanced 0.8 per cent to HK$104.80.
“While Hong Kong stocks are cheap, they have limited upside room for now because of the lack of catalysts as China’s economic data falls short of expectations and the drop in US Treasury yields is not as fast as expected,” said Cao Liulong, an analyst at Founder Securities. “Stocks will be meandering through the rest of the year until we see more clarity of policy support.”
Sentiment on Hong Kong stocks has taken a beating from China’s unexpected import contraction and Moody’s Investors Service decision to cut the outlook on the ratings of the sovereign and the country’s top banks. Official data due over the weekend may also show consumer and producer prices shrank by 0.2 per cent and 2.8 per cent, respectively, in November, which could intensify deflation concerns.
The Hang Seng Index has dropped 17 per cent this year, making it the worst performer among the world’s key benchmarks this year, erasing US$631 billion in market value.
Shenzhen VAPEL Power Supply Technology, a power equipment maker, surged 316 per cent to 28.60 yuan in Shenzhen on its first day of trading.
Other major Asian markets were mixed. Japan’s Nikkei 225 slid 1.7 per cent on expectations that its central bank will end the negative interest-rate policy, while South Korea’s Kospi rose 1 per cent and Australia’s S&P/ASX 200 added 0.3 per cent.