Hong Kong Stocks Waver as China Begins Tone-Setting Economic Conference

Market Watcher12-11

Hong Kong stocks fluctuated between gains and losses as China’s top leaders kicked off a key meeting that investors believe will set the tone for the nation’s economy next year. Hong Kong stocks turned negative in afternoon, erasing earlier gains.

The Hang Seng Index dropped 0.5% in afternoon trading, while the Hang Seng Tech Index fell 1%.

All eyes are on a two-day economic work conference, which begins on Wednesday, as investors are hungry for more detailed policy measures after a readout from a Politburo meeting earlier this week hinted at a greater stimulus effort to improve growth. The Hang Seng Index has gained almost 3 per cent so far this week, indicating that there are high hopes for supportive policies among investors.

Among the most substantial gainers that make up the Hang Seng Index, hotpot restaurant chain Haidilao International and China Mengniu Dairy both rose 2.1%. Among the losers, tool maker Techtronic Industries slumped 4.2% and real estate developer Sun Hung Kai Properties fell 1.8%.

Fosun Tourism Group jumped 80.3 per cent to HK$7.21, on track for its largest-ever gain, following the release of a go-private plan where the offer price is 95 per cent higher than its stock’s last close.

SenseTime, the Chinese developer of artificial intelligence technology, fell 1.3% after it signed an agreement with three brokerages for a stock placement that would raise HK$2.79 billion (US$358.8 million).

In terms of other star stocks, Bilibili fell 4%; NIO and Meituan fell 3%; JD.com fell 2%; XPeng fell 1.5%; Li Auto and Xiaomi fell 1.1%; Baidu rose 0.8%.

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