The Hang Seng Index closed 0.1 per cent lower at 17,082.11, snapping a rally that saw the benchmark add 5.3 per cent in the past three days. The Hang Seng Tech Index held onto gains, rising 0.3 per cent. The Shanghai Composite Index retreated 0.4 per cent.
Tempering the losses, Li Auto surged 3.2 per cent to HK$151.70 and AIA Group added 0.5 per cent to HK$64.85 before its earnings on Thursday that may show a jump in full-year profit for 2023.
Buying sentiment stalled after the Hang Seng Index erased its year-to-date loss on Tuesday and the tech index, which tracks the biggest stocks in the sector, rebounded 21 per cent from a January low, technically defined as entering a bull market. Trading volume, meanwhile, rose to a six-month high of HK$150 billion (US$19.2 billion).
“While expectations for earnings are not fully on the mend, improved sentiment and low valuations are the main catalysts that are powering stocks now,” said Carl Cai, an analyst at Bocom International Holdings in Hong Kong. “We expected the rebound to carry on for a couple of months.”
On Wednesday, mainland investors bought HK$11.4 billion of Hong Kong stocks via the Stock Connect programme. That marked the 20th straight day of inflows, the longest streak in almost a year.
Hong Kong share buy-backs propel Hang Seng Index into the black
Hong Kong share buy-backs propel Hang Seng Index into the black
Traders also moved on from an overnight report showing slightly hotter-than-estimated inflation in the US, believing the February data would do little to roll back bets on a likely Federal Reserve interest-rate cut in June.
China Overseas Land and Development sank 2.4 per cent to HK$11.32 and Longfor Group Holdings lost 1.3 per cent to HK$10.70. China Resources Land retreated 0.6 per cent to HK$24.60.
Troubled peer Country Garden said it did not pay a 96 million yuan (US$13.3 million) annual coupon on Tuesday to bondholders as the money was “not fully ready,” adding that the company was making all-out efforts to raise funds for the repayment.
Two companies made their trading debut. Shandong Cvicse Middleware jumped 117 per cent to 48.65 yuan in Shanghai, and Newtechwood, which makes environmentally friendly plastic wood profiles, surged 158 per cent to 37.39 yuan in Shenzhen.
Other major Asian markets were mixed. Japan’s Nikkei 225 slipped 0.3 per cent, while South Korea’s Kospi rose 0.4 per cent and Australia’s S&P/ASX 200 added 0.2 per cent.