The Hang Seng Tech Index sank 1.6 per cent. Benchmarks on the mainland were also weak: the CSI 300 Index slipped 0.5 per cent and the Shanghai Composite Index shed 0.3 per cent.
Investors are gearing up for the National People’s Congress Standing Committee meeting next week. Traders have set a high bar for its outcome, as the more than 20 per cent gains in China and Hong Kong markets since late September have priced in the prospect of fiscal support for the economy. For the rally to be sustainable, legislators would need to approve at least 2 trillion yuan (US$280 billion) of fiscal stimulus, according to top investment banks.
“The Hong Kong market doesn’t have much upside room now and is most likely to be rangebound, given the uncertainty of the earnings season and the rising US Treasury yields,” said Yan Zhaojun, an analyst at Zhongtai Securities. “Still, the market has hopes of fiscal stimulus, but is a bit conservative on the size and scope.”
China Merchants Bank, the nation’s largest retail lender, dropped 2.2 per cent to HK$38.50 after saying its net income decreased 0.6 per cent from a year earlier in the first nine months of 2024. Home appliances maker Haier Smart Home fell 2.7 per cent to HK$29 after its third-quarter profit fell short of analysts’ expectations.
