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Moody’s lowered the outlook of China’s future. Hong Kong stocks fell sharply across the board.
The market opened down on Tuesday. Hang Seng index opened down 59 points, H share index down 3 points and technology index down 15 points. AIA lost 2.2% for 26-point loss. Wuxi Bio...
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Moody’s lowered the outlook of China’s future. Hong Kong stocks fell sharply across the board.
Analyst : Lun Sheung Nim (CEO, GEO Securities Limited)
The market opened down on Tuesday. Hang Seng index opened down 59 points, H share index down 3 points and technology index down 15 points. AIA lost 2.2% for 26-point loss. Wuxi Biologics lost 5% to lead the losers for 10-point loss. Meituan lost 0.9% for 7-point loss. On the other hand, Tencent rose 1.32% for 18-point gain. CCB rose 0.67% for 5-point gain. CR Mix rose 3% and CR Land rose 2% to lead the gainers. The market fell further after opening, as Hang Seng index lost more than 100 points. AIA lost 3.5% for 42-point loss. HK Exchanges lost 3.4% for 18-point loss. Wuxi Biologics lost 5.3% for 10-point loss. The market fell further in midmorning. Hang Seng index lost more than 300 points. Heavyweights fell further. AIA lost 4.3% for 50-point loss. HK Exchanges lost 5.5% for 29-point loss. Tencent lost 2.2% for 31-point loss. Meituan lost 2.7% for 22-point loss. Wuxi Biologics lost 10% for 21-point loss. Alibaba lost 1.1% for 14-point loss. Xiaomi lost 3% for 12-point loss. CCB lost 1.56% for 13-point loss. Macau gaming stocks rose against the market. Sands rose 2%. Galaxy rose 0.6%. Shanghai composite index closed the morning down 25 points. Hang Seng index fell to a low of 16333 points, down 313 points, and closed the morning down 292 points. H share index closed the morning down 86 points and technology index down 72 points. Turnover was $59.2 billion.

The market was little changed in the afternoon. Hang Seng index lost about 400 points. AIA lost 5.4% for 65-point loss. Tencent lost 3.3% for 45-point loss. HK Exchanges lost 6.5% for 33-point loss. Wuxi Biologics lost 9.6% for 20-point loss. Meituan lost 2.8% for 22-point loss. Lenovo lost 11% for 13-point loss. Xiaomi lost 4.5% for 19-point loss. However, Lining rose 2.2% against the market. JD Health rose 1.9%. Galaxy rose 1.76%. Auto shares also rose against the market. BYD rose 0.9%. Nio rose 2.5%. XPeng rose 2.2%. Controlling shareholders of Weiqiao Textiles offered to privatize the company. Share price soared 89% to lead all stocks. However, Miniso’s management sold down their shares. Share price crashed 17%. The Wuxi Group of companies fell in unison with Biologics. Wuxi XDC lost 4.2%. JW Therapeutic lost 1.65%. Wuxi Apptec lost 2.2%. Gold fell sharply after reaching historic high. Gold miners fell. China Gold lost 4.1%. Zijin lost6 3%. Zhaojin lost 3.85%. Technology stocks fell. Lenovo lost 11%. Sunny Optical lost 6.8%. Netease lost 5.6%. Kingdee lost 4.7%. Weibo lost 4.1%. Baidu lost 3.6%. Moody lowered China’s outlook from stable to negative. Shanghai composite index closed down 39 points and below 3000 points. Hang Seng index fell to a low of 16228 points, down 475 points and closed down 318 points, H share index down 93 points and technology index down 77 points. Turnover was $118 billion.

Overnight, overseas markets were mixed. DAX rose 128 points; CAC rose 54 points but FTSE lost 23 points. In the US, job openings fell. US stocks were mixed. Dow Jones lost 80 points and S & P lost 2 points. Yet, Nasdaq rose 44 points. Hong Kong ADR’s rose 8 points. Night future rose 35 points. We expect the market to rebound today.
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