Published 17:11 IST, December 21st 2023
Hong Kong shares track global markets lower
In HK's tech sector, there was a general slip of 0.8 per cent.
- Republic Business
- 2 min read
Hong Kong's financial landscape witnessed a slight downturn on Thursday. Both the Hang Seng Index and the Hang Seng China Enterprises Index faced a 0.2 per cent loss, contributing to a broader decline in Asian shares. This decline followed a break in Wall Street's prolonged winning streak. Simultaneously, Treasury yields remained close to a five-month low, driven by expectations that the subdued inflation observed in Britain might echo in forthcoming US price data.
Amidst this fluctuation, certain sectors experienced positive momentum. Companies specializing in new energy, artificial intelligence, and tourism saw noteworthy jumps, each surging more than 1 per cent and leading the gains in the market.
Foreign investors notably shifted their positions, transitioning to net buyers of Chinese shares after two consecutive selling sessions. Despite these shifts, sentiments among investors remained subdued due to prevailing concerns about the economic recovery and potential policy stimulus measures.
In Hong Kong's tech sector, there was a general slip of 0.8 per cent. However, notable exceptions included Alibaba and Meituan, which managed to record rises of 0.4 per cent and 1.5 per cent, respectively.
Looking ahead, market analysts like Zhang Chi from Sinolink Securities foresee potential changes in monetary policy in the upcoming year. Chi suggests that an early shift towards looser monetary policies might trigger a substantial market rebound. However, the sustainability of this rebound hinges significantly on the trajectory of the economic recovery and the overall liquidity scenario.
(With Reuters inputs)
Updated 17:11 IST, December 21st 2023