2 days ago
- Business
- Business Recorder
China and HK stocks lower as investors book profits after strong rally
HONG KONG: China and Hong Kong stocks declined on Tuesday as investors locked in profits ahead of the end of the month, after benchmarks hit multi-year highs.
China's blue-chip CSI300 Index and the Shanghai Composite Index edged down 0.05% and 0.08%, respectively, by the lunch break.
Hong Kong benchmark Hang Seng dropped 0.95%, while Hang Seng Tech lost 1.76%.
The retreat comes after the Shanghai Composite peaked to a 3-1/2-year high on Monday. The Hang Seng also hit its highest since November 2021 last week.
'Most likely, people are taking some money off the table before the Hang Seng Index futures that expire tomorrow (to book gains),' said Steven Leung, executive director at broker UOB Kay Hian.
China's announced measures to boost birthrate through an annual childcare subsidy of 3,600 yuan (about $500) until age three. That failed to boost market sentiment.
Infant formula maker Beingmate jumped 6% in Shenzhen, but China Feihe dipped 0.6% in Hong Kong. Hong Kong-listed Jinxin Fertility was also down 1.2%
China stocks pause rally as investors eye Politburo meeting
'As the subsidy is relatively small, we don't think the birth rate will significantly increase in coming years,' Ting Lu, chief China economist at Nomura, said in a note on Monday night.
Meanwhile, healthcare and biotech stocks extended their rally, up more than 2% both in Hong Kong and mainland A-shares, to lead gains.
Investors are also awaiting the outcome of a new round of trade talks between top U.S. and Chinese economic officials, which began in Stockholm on Monday.
The smaller Shenzhen index was down 0.2%, the start-up board ChiNext Composite index was higher by 0.92% and Shanghai's tech-focused STAR50 index was up 0.83%?.
Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.69% while Japan's Nikkei index was down 0.87%.
