Hong Kong stocks fell on Tuesday as investors braced for data expected to show a further contraction in China’s manufacturing sector, with shares in Hang Lung Properties and Standard Chartered falling ahead of earnings reports.
The Hang Seng Index was down 1.2% to 17,023.75 as of 10:10 a.m. local time, giving up most of Monday’s gains. The technology index slid 1.4% and the Shanghai Composite Index fell 0.7% to its lowest in six months.
Food delivery platform Meituan fell 1.1% to HK$107.20, electric vehicle maker BYD fell 1.8% to HK$227.20, sportswear maker Li Ning dropped 2.3% to HK$14.16 and rival Anta fell 1.7% to HK$68.55, beverage maker Mengniu Daily fell 5.9% to HK$12.70 and hotpot chain Haidilao dropped 2.7% to HK$12.28.
Local property developer Hang Lung Properties fell 0.5 percent to HK$6.36, while Standard Chartered fell 2.3 percent to HK$71.60 ahead of its results due later today.
Sentiment remains cautious ahead of key data expected to show a further contraction in China’s manufacturing activity. The manufacturing PMI, due on Wednesday, is expected to fall to 49.4 in June from 49.5 in May, according to a Bloomberg survey of economists.
Hong Kong’s main stock index is heading for a second straight month of decline as investors react to China’s tepid policy response despite disappointing economic fundamentals, wiping out all gains this year and pushing the Hong Kong stock exchange into one of the world’s worst-performing major markets.
Meanwhile, biotech company Wuxi APPTEC said its net profit fell 20 percent to 4.2 billion yuan due to the escalating US-China conflict. Its shares rose 4.7 percent to HK$30.10, while group company Wuxi Biologics rose 1.7 percent to HK$10.74.
Analysts at Citigroup maintained their price target for the company at HK$90 and said the results were in line with expectations. They said management guidance indicated revenue growth of 2.7% to 8.6%, and the stable net profit margin indicated improved operating efficiency, offset by new capacity additions and currency effects.
Other major Asian markets fell: Japan’s Nikkei fell 0.5%, Australia’s S&P/ASX 200 lost 0.9% and South Korea’s KOSPI fell 1%.