Hang Seng Index drops 212 points, experiencing a yearly low, while Meituan’s decline drags down the market

911

1st December 2023 – (Hong Kong) Hong Kong’s stock market witnessed another decline as it entered the month of December. The Hang Seng Index opened with a 23-point drop and faced resistance at the 17,000 level throughout the day. After a volatile afternoon, the market closed at a low of 16,830 points, marking a new low for over a year and a decline of 212 points or 1.24%. The H-share index closed at 5,761 points, down 95 points or 1.64%, while the technology index closed at 3,830 points, down 68 points or 1.76%. The trading volume on the main board reached HK$114.2 billion, surpassing the one trillion mark for the third consecutive day. The net inflow from the Stock Connect scheme amounted to HK$5.289 billion.

This week, the Hang Seng Index recorded an overall decline of 729 points, representing a decrease of 4.15%, while the technology sector index, the HSTECH, fell by 193 points or 4.79%.

The market downturn was primarily driven by major technology and internet-related stocks. Meituan, one of the largest players in the sector, broke through the HKD 90 psychological level, closing at HK$87.9, a decline of nearly 3%. Other prominent companies in the industry also experienced declines: Xiaomi Group dropped by 2.9%, Ctrip fell by 1.9%, Tencent dropped by 2.4%, Alibaba slipped by 1.2%, JD.com declined by 0.8%, Baidu fell by 1%, and NetEase decreased by 0.3%. Collectively, these declines weighed down the Hang Seng Index by 95 points, contributing to a significant portion of the overall decline.

In the financial sector, individual stocks exhibited mixed performance. In the afternoon session, there was selling pressure on banking stocks, with China Merchants Bank declining by 2.2%, and the three major state-owned banks (Industrial and Commercial Bank of China, China Construction Bank, and Bank of China) all closing down by 1.3%. Other financial stocks also experienced declines, including AIA Group which fell by 0.8%, and China Life Insurance Company which dropped by 0.7%. However, HSBC Holdings remained unchanged, while Ping An Insurance saw a modest increase of 0.1%, and Hong Kong Exchanges and Clearing rose by 0.9%.

Stocks in the domestic consumption sector faced significant selling pressure, resulting in declines across the board. Haidilao International Holding dropped by 4.2%, Haier Smart Home fell by 3.9%, China Mengniu Dairy declined by 3.4%, ANTA Sports Products fell by 3.1%, Chow Tai Fook Jewellery dropped by 2.1%, and China Resources Beer slipped by 1.2%.