Hong Kong shares continued their downward trend on Wednesday, hovering near a three-month low as investor concerns about upcoming corporate earnings, fueled by the aftershocks of China's recent economic policy adjustments, weighed heavily on the market.
The Hang Seng Index fell 0.91%, or 158.31 points, to close Wednesday's session at 17,311.05. The Hang Seng China Enterprises Index shed 0.85%, or 52.37 points, to close at 6,142.32.
Bloomberg Intelligence said anxieties over expected job cuts in Hong Kong's investment banking sector are adding to the market's woes. The slowdown in China's economy is prompting employers to consider trimming their highly paid staff. These potential cuts, coupled with recent pay reductions in the financial service sector, further dampen consumer confidence and cast a shadow on the already struggling property market.
Elsewhere, China's top firms have raked in $14 billion in funds from offshore convertible bonds so far in 2024 as they take advantage of high interest rates, Alibaba Group (HKG:9988) raised $5 billion in May, while Ping An Insurance (HKG:2318, SHA:601318) raised $3.5 billion in July, the South China Morning Post reported Tuesday.
On the corporate front, China's securities regulator has approved Midea Group's (SHE:000333) planned initial public offering on the Hong Kong bourse. The appliance manufacturer's overseas listing could rake in more than $1 billion in proceeds, the South China Morning Post reported, citing sources familiar with the deal.
MicroPort NeuroTech (HKG:2172) shares closed more than 7% higher after the company said it expects to record an up to 154% jump in net profit in the first half to as much as 150 million yuan.
Meanwhile, ASMPT (HKG:0522) shares tumbled nearly 23% after it reported a net profit of HK$314.2 million, almost half the profit recorded in the prior-year period. Earnings per share for the first half went down to HK$0.76 per share from the year-ago period.
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