19 August 2019

HSI slumps over 360 points amid economic slowdown fears

Hong Kong’s stock market appears to have entered a correction phase, with the benchmark Hang Seng Index (HSI) slumping more than 360 points on Wednesday, dragged down by weak overseas sentiment and worries over China’s economic slowdown. The H-share index hit an eight-month low.

The HSI ended the day 367 points or 1.65 percent lower at 21,901. The Hang Seng China Enterprises Index, the main gauge for H shares, fell 1.64 percent to finish at 9,364. The Shanghai Composite Index slipped 0.17 percent to close at 1,997 points.

Only four of the 50 blue chips closed higher for the day — MTR Corp. (00066.HK), Kunlun Energy (00135.HK), China Resources Enterprise (00291.HK) and Want Want China (00151.HK).

Belle International (01880.HK) plunged 9.4 percent to become the worst-performing blue chip of the day after same-store sales for the three months to November disappointed investors.

Most of the mainland lenders and insurance players finished in the red. But China CITIC Bank (00998.HK) bucked the trend, soaring 2.9 percent on news that it will cooperate with internet giants Alibaba and Tencent on a virtual credit card service.

Internet and software plays faced heavy selling pressure during the session. Tencent (00700.HK) closed 2.5 percent lower, Kingsoft (03888.HK) dropped 4.1 percent, while NetDragon Websoft (00777.HK) was down 5 percent.

Funds continued to snap up pharmaceutical plays. Sihuan Pharmaceutical (00460.HK) jumped 4.6 percent after UBS raised its target price. CSPC Pharmaceutical Group (01093.HK) and Mingyuan Medicare Development (00233.HK) also enjoyed notable gains.

Meanwhile, Hong Kong Television Network (01137.HK) nosedived by 22.3 percent after founder Ricky Wong {王維基} said the company will suspend the launch of its internet and mobile TV services amid issues with the government about the broadcast license.

ChinaVision Media (01060.HK) surged 186 percent after Alibaba invested HK$6.2 billion (US$798 million) in the company in exchange for a 60 percent stake.

– Contact the writer at [email protected]




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