The Hang Seng Index dropped 0.9 per cent to 16,228.75 on Wednesday, approaching the lowest level in 14 months. The Tech Index declined 1.2 per cent while the Shanghai Composite Index lost 1.2 per cent.
Longfor Group tumbled 2.5 per cent to HK$12.42 while peer China Resources Land lost 3.5 per cent to HK$25.95, leading a 2.4 per cent retreat in an index tracking mainland Chinese developers. Tencent fell 1.3 per cent to HK$307.40 and Alibaba Group dropped 1 per cent to HK$69.40 while JD.com slipped 2.3 per cent to HK$97.95.
Banks also declined. HSBC retreated 0.1 per cent to HK$60.60 and Construction Bank eased 0.7 per cent to HK$4.47 while China Merchants Bank slipped 4.5 per cent to HK$24.50.
Policymakers prioritised tech innovation, upgrading traditional industries and artificial intelligence. Still, they offered no new measures to revive the ailing housing market. “Facilitating the upgrading of housing conditions”, mentioned in last year’s meeting, was deleted from this week’s statement, according to Goldman Sachs.
Shanghai’s rich seek refuge in overseas homes amid domestic property sell-off
Shanghai’s rich seek refuge in overseas homes amid domestic property sell-off
“The lack of new discussion around the property sector could be disappointing to some investors,” the Wall Street investment bank said a report. “This may suggest the authority is still exploring ways to ensure stable development of the sector.”
The Hang Seng Index has lost 4.8 per cent in December, adding to losses in four preceding months. The benchmark’s 18 per cent slide this year is the worst among major stock indices worldwide, according to Bloomberg data. A sub-index tracking mainland developers has plunged 43 per cent this year.
Asian stocks were mixed ahead of the Federal Reserve’s last policy meeting this year on Wednesday. Japan’s Nikkei 225 and Australia’s S&P/ASX 200 both climbed 0.3 per cent while Korea’s Kospi index dropped 1 per cent.