12 December 2019

Blue chip sell-off weighs on stocks as CPC plenum ends

Hong Kong stocks ended lower in a volatile trading session Tuesday as markets on both sides of the border waited for clues to Beijing’s economic agenda after the close of an all-important Communist Party plenum.

The benchmark Hang Seng Index slipped 0.73 percent to 22,901 points as blue chips came under selling pressure. The Hang Seng China Enterprises Index lost 0.2 percent to finish at 10,561. The Shanghai Composite Index rose 0.82 percent to 2,126 points.

Investors sold blue chips, driving China Mobile (00941.HK) and HSBC (00005.HK) down 1.2 percent and 0.9 percent, respectively. However, Wharf Holdings (00004.HK) bucked the trend, gaining 1.7 percent, one of the day’s best performers.

Chinese technology giant Tencent (00700.HK) fell 0.5 percent ahead of its results announcement Wednesday. NetDragon Websoft (00777.HK) and Kingsoft Corp. (03888.HK) slumped 4.2 percent and 2.1 percent, respectively. Forgame Holdings (00484.HK) took a nosedive, shedding 5.7 percent to its worst finish since it went public last month.

Online games developer Boyaa Interactive International (00434.HK) surged 30.3 percent before closing 13.8 percent higher on its market debut. 

A wave of selling hit telecom plays after reports the Hong Kong government is considering the re-auction of one-third of the 3G spectrum. SmarTone Telecommunications (00315.HK) slumped 6.3 percent to a two-year low. Hutchison Telecommunications Hong Kong (00215.HK) and HKT-SS (06823.HK) tumbled 4.5 percent and 1.5 percent, respectively.

China Merchants Holdings International (00144.HK) slipped 3.4 percent, leading a sector-wide decline in shipping counters in the range of 1-2 percent.

– Contact the writer at [email protected]