Hong Kong stocks mark their worst year in a decade, with China moving higher

SHANGHAI, Dec. 31 (Reuters) – Hong Kong stocks rose on Friday but marked their worst annual performance in a decade following China’s regulatory crackdown on tech companies, while mainland stocks rose slightly on gains in the emerging energy and real estate sectors.

The CSI300 index (.CSI300) remained unchanged at 4,923.30 points at the end of the morning session, while the Shanghai Composite Index (.SSEC) rose 0.4% to 3,632.14 points.

** For 2021 the CSI300 index lost 5.5% while the Shanghai Composite index gained 4.6%.

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** Revenue in China’s A-share markets is expected to surpass a 2015 record, while the country’s total assets under management (AUM) of the mutual fund industry reached 25.3 trillion yuan ($ 3.97 trillion) this year, a record high reached.

** To lighten the mood, the chairman of China’s Securities Commission said the country would stabilize and reform its capital markets over the next year. Continue reading

** China’s factory activity and service sector rose slightly in December despite local COVID-19 outbreaks. Continue reading

** Real estate developers (.CSI000952) rose 2.5% Friday after a central bank official said real estate mergers and acquisitions will help companies deleverage. Continue reading

** New energy stocks (.CSI399808) rose 2.1% with the photovoltaic industry (.CSI931151) rose 3.6%. Agricultural (.CSI000809) and machinery (.CSI000812) stocks rose 2% and 1.5%, respectively.

** However, gains were capped by losses in consumer staples, with liquor manufacturers (.CSI399997) down 1.7%.

** The Hang Seng Index (.HSI) rose 1.2% to 23,397.67 points, but fell 14.1% this year. The Hong Kong China Enterprises Index (.HSCE) rose 1.7% to 8,236.35, but saw its largest annual decline since 2009, falling 23.3%.

** Tech giants (.HSTECH) rose 3.6%, tracking the overnight gains of their Wall Street-listed stocks, with the NASDAQ Golden Dragon China Index (.HXC) posting its sharpest increase since November 2008.

** However, the tech index (.HSTECH) has fallen more than 30% this year amid Beijing’s widespread action.

** The outlook for the troubled sector remained divergent, with some analysts considering current valuations attractive while others believed regulatory uncertainty remained an overhang.

** Healthcare (.HSCIH) gained 3.4% over the course of the day but lost 27.7% in 2021.

** Hong Kong-listed mainland developers (.HSMPI) gained 1%, Evergrande (3333.HK) up 6%.

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Reporting from Shanghai Newsroom; Editing by Devika Syamnath

Our standards: The Thomson Reuters Trust Principles.


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