Slow trade drives Hong Kong stocks lower ahead of New Year holiday
Sentiment swings between concerns over a weakening growth outlook and bets that Beijing will step up policy easing to prop up the economy
The Hang Seng Index sank 0.7 per cent to 25,635.23 at the close, giving up an earlier gain of as much as 1 per cent spurred by expectations about policies from Beijing to shore up growth and a so-called Santa Claus rally in global equities. The Hang Seng Tech Index lost 0.3 per cent.
Shares worth HK$224.5 billion (US$28.9 billion) changed hands in Hong Kong throughout the day, 10 per cent below the average for the year.
On the mainland, the CSI 300 Index fell 0.4 per cent and the Shanghai Composite Index was little changed.
It is the second consecutive shortened trading week for Hong Kong’s stock market, with investors returning on Monday after last week’s two-day Christmas holiday. The city’s financial market will trade for half a day on Wednesday and close on Thursday for New Year’s Day. Mainland’s markets will be closed on Thursday and Friday.
Limiting the losses, electric vehicle maker BYD rallied 3.7 per cent to HK$97.10 after China’s finance ministry said it would extend a trade-in programme for consumer goods into 2026. Peer Li Auto gained 1.6 per cent to HK$66.10.