Hong Kong stocks slip for sixth day on heightened policy tightening risks, US-China tensions
Hong Kong stocks slid after a surge in factory-gate prices in China stoked concerns about further policy tightening while both the US and China took seemingly more aggressive legal measures to counter each other on economic and political issues.
The Hang Seng Index slipped 0.2 per cent to 28,738.87 at 10.20am local time. The index was on track for six consecutive days of losses, equalling its longest losing streak since late September 2019. The Shanghai Composite and the CSI 300 gauge were little changed with movements of less than 0.1 per cent.
Alibaba Health Information Technology paced losers among blue chips, falling 3.9 per cent to HK$17.82. Meituan dropped 1.5 per cent to HK$292.60. CSPC Pharmaceutical fell 2 per cent to HK$12.06.
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Factory gate prices in China hit a 13-year high in May, a government report showed on Wednesday. The producer price index (PPI) rose 9 per cent in May from a year earlier, up from a gain of 6.8 per cent in April. This was faster than consensus for a 8.5 per cent increase in a Bloomberg survey.
China’s official consumer price index (CPI), meanwhile, rose 1.3 per cent in May from a year earlier, from 0.9 per cent in April. This was below the Bloomberg survey median, which had predicted a 1.6 per cent rise.
The US Senate on Tuesday passed a sweeping legislation designed to strengthen Washington’s hand in its escalating geopolitical and economic competition with China. The bill, which includes about US$250 billion worth of spending, touches on nearly every aspect of the tensed US-China ties. China separately was reported to be preparing to pass an anti-sanctions law of its own.
Limiting market losses, Chinese oil giants advanced as crude oil futures stayed above the US$70 threshold, a level last seen in October 2018 amid demand outlook. PetroChina rose 2.7 per cent to HK$3.44, while CNOOC gained 1.6 per cent to HK$8.90. Sinopec added 1.7 per cent to HK$4.16.
In Shanghai, Kaili Catalyst & New Materials debuted with a 351 per cent surge from its listing price of 18.94 yuan.
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