20 August 2019

HSI continues slide amid worsening sentiment

Hong Kong’s benchmark Hang Seng Index (HSI) continued its slide on Thursday as China’s latest economic data again missed expectations, weighing on investor sentiment.

The HSI slid 145 points or 0.67 percent to end at 21,756. The Hang Seng China Enterprises Index, the main gauge for H shares, fell 0.44 percent to finish at 9,322, while the Shanghai Composite Index rose 1.07 percent to 2,019 points.

Retail sales in China grew 11.8 percent in the first two months from a year earlier, data released by the National Bureau of Statistics on Thursday showed. The figure was much lower than the expected growth rate of 13.5 percent. Value added to the industry increased 8.6 percent during the period, slower than the market expectation of 9.5 percent growth.

China Overseas Land & Investment (00688.HK) fell over 4 percent to become the session’s worst-performing blue chip after it announced a 20 percent growth in its core profit, missing analyst estimates. Internet giant Tencent (00700.HK) closed 2.3 percent lower.

Property developers tumbled. Country Garden (02007.HK) slumped over 10 percent after Goldman Sachs said its sales target was conservative. China Resources Land (01109.HK) dropped 3.3 percent while Agile Property (03383.HK) closed 4.6 percent lower.

ChinaVision Media Group (01060.HK) tumbled 11.5 percent as investors took profit. The counter had surged over 180 percent in the previous session after Alibaba became the firm’s largest shareholder.

– Contact the writer at [email protected]




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