The Hang Seng Index fell 0.6 per cent to 17,361.12 at the noon break, approaching its lowest level since April 25. The Hang Seng Tech Index slid 0.9 per cent and the Shanghai Composite Index added 0.1 per cent.
Jewellery retailer Chow Tai Fook tumbled almost 6 per cent after saying that retail sales fell 20 per cent in the first quarter from a year ago. Chinese electric-vehicle maker Li Auto weakened after Tesla reported earnings that trailed analysts’ consensus estimates and delayed its Robotaxi event. Bottled water maker Nongfu Spring slumped after Daiwa Securities Group downgraded its rating on the stock. Meanwhile, NetEase bucked the sell-off ahead of the launch of a new game title.
“Trading will more focus on earnings results, with the earnings season kicking off,” said Zhou Zhengfeng, an analyst at Nanjing Securities. “Meanwhile, the market is also closely watching the policy implementation to fulfil the annual growth target. If that doesn’t come through as expected by the market, the risk appetite will be dented.”
Chow Tai Fook tumbled 5.9 per cent to HK$7.44, citing “macro challenges (that) continued to impact consumers’ spending”. Li Auto shed 3.7 per cent to HK$74.80 and its peer BYD lost 2.3 per cent to HK$233. Nongfu Spring plunged 7 per cent to HK$30.80 after Daiwa cut its recommendation on the stock to hold from outperform because of weak sales of its natural-water products.
NetEase jumped 4.9 per cent to HK$149.20 a day before the launch of its highly-anticipated game Naraka Bladepoint Mobile.
Investors’ hope of a stabilisation in the property market is simply wishful thinking and China will need to ramp up its policy support for the sector, according to Nomura Holdings.
Other major Asian markets all headed south. Japan’s Nikkei 225 slipped 0.6 per cent, while Australia’s S&P/ASX 200 and South Korea’s Kospi both dropped 0.1 per cent.