Hong Kong stocks slip to 4-week low before Fed, HKMA decisions while BlackRock loses buy conviction on China
Stocks decline to the lowest level since August 23 as investors await the Fed’s rate decision later todayBlackRock strategists lose conviction on Chinese equities, as property slump and policy inadequacy pressure marketHong Kong stock marketJiaxing LiPublished: 10:43am, 20 Sep, 2023Why you can trust SCMP
The Hang Seng Index fell 0.8 per cent to 17,862.36 at the noon trading break, the lowest level since August 23. The Tech Index declined 2 per cent while the Shanghai Composite Index dropped 0.3 per cent.
Tencent weakened 1.2 per cent to HK$308.80, NetEase slipped 3 per cent to HK$155.30, and Meituan lost 2.4 per cent to HK$118.80. Property developer Longfor Group fell 1.8 per cent to HK$15.22 while Wuxi Biologics tumbled 3.9 per cent to HK$41.70.
Limiting the declines, oil-related stocks advanced on the outlook for crude prices after a recent surge towards US$100 a barrel. PetroChina climbed 1.2 per cent to HK$5.81 while ENN Energy jumped 3.1 per cent to HK$64.25.
Strategists at BlackRock Investment Institute are the latest to call out China’s inadequate response to its economic struggles. They downgraded their tactical view on Chinese equities to neutral from overweight this week, overturning its buy conviction since February.