Alibaba, HSBC, Longfor, forecast that China’s growth will slow down drags Hong Kong stocks to 14-month low, house prices fall by the most since 2015

The Hang Seng Index fell 2.8% to 15,419.68 as of the local noon break, its lowest since November 3, 2022. Today’s decline was the first one-day decline in six months. The high-tech index fell 3.9%, and the Shanghai Composite Index fell 0.6%.

Alibaba Group fell 2.8% to HK$66.50, peer Jingdong Group fell 4.1% to HK$89.55 and Tencent fell 2.9% to HK$274.20. HSBC led the decline in its financial content, falling by 1.3% to HK$58.35. Meanwhile, AIA Group fell 3.6% to HK$60.30, while ICBC fell 1.6% to HK$3.58.

Longfor Group fell 4.7% to HK$9.06, peer China Resources Land fell 4.6% to HK$23.10, and peer China Overseas fell 4.6% to HK$23.10 as new home prices fell in major mainland cities.・The rand fell by 4.2% to HK$11.48.

Other December data was mixed, the bureau said, with retail sales lower than expected and industrial production higher than expected.

“China’s policymakers’ reluctance to provide meaningful stimulus confirms that China is unlikely to become a meaningful source of growth for the global economy,” BCA Research strategists wrote in a report. Stated. “It will take more economic pain to force policymakers to cut rates.”

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Stock indexes on Hong Kong and mainland stock exchanges fell at least 4% on growing concerns about China’s economic outlook as China’s stimulus plans failed to spur a strong recovery, BCA said. Earlier this week, the People’s Bank of China kept its policy lending rate unchanged for five months, suggesting it is concerned about undermining the value of the local currency, a Montreal-based research firm said.

The BCA said in its report that the decision to keep interest rates on hold suggests that policymakers are not convinced that a small rate cut will boost economic conditions. It added that private sector sentiment has weakened against the backdrop of a weak real estate market, undermining the effectiveness of policy stimulus.

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“Investors’ panic selling has accelerated following the GDP data, and investors are expecting further cuts in corporate earnings forecasts,” said Wu Kang, investment manager at Dongwu Securities in Shanghai. . “Meanwhile, expectations for further economic stimulus are also rising.”

Other major Asian markets were mixed. Japan’s Nikkei Stock Average rose 0.3%, while South Korea’s Kospi Index fell 2.3% and Australia’s S&P/ASX200 Index fell 0.6%.