Asian currencies are under pressure, and the central parity rate of the renminbi has hit a seven-month low. A report from Morgan Stanley shows that since this month, the mutual benefit and hedge funds have been flowing out of shares of Chinese companies. The Hang Seng Index fell after opening 143 points lower, with the decline expanding. It fell to 17,677 points after a 412-point drop in the afternoon, finally closing at 17,716 points, down 373 points or 2.1% for the whole day. The HSTECH index fell 100 points or 2.7% to close at 3588 points, while the national index fell 153 points or 2.4% to close at 6.324 points. The total trading volume of the whole market for the day is 104.225 billion yuan, and the net inflow of southbound trading of the Shanghai-Hong Kong and Shenzhen-Hong Kong stock connects was 3.151 billion yuan and 2.45 billion yuan respectively.
Amazon plans to ship direct from China, similar to the Temu section, for Amazon (AMZN.US). Ali (09988.HK) stock fell by 1.8%. In other technology stocks, Xiaomi (01810.HK) dropped 7.2% to HKD 16.54, Tencent (00700.HK), JD.com (09618.HK), Meituan (03690.HK), and Kuaishou (01024.HK) fell 2% to 2.8%, and Baidu (09888.HK) fell 1.4%. Sindou (00020.HK), Ali Health (00241.HK), JD Health (06618.HK), and Bilibili (09626.HK) fell 4.3% to 5.5%. WiMi Hologram Cloud Inc. (02013.HK) fell 7.3%.
Memory chip stock Micron Technology Inc. (MU.US) did not exceed revenue expectations and the stock price fell after hours. Semiconductor China (00981.HK) and Huahong (01347.HK) fell 4.3% and 3.7% respectively. Semiconductor equipment stock ASMPT (00522.HK) rose against the trend, up 5.8%. Tesla increased by more than 4% overnight and automaker NIO Inc (09866.HK) followed suiting, rising 2.5%. BYD Co. Ltd (01211.HK), Geely (00175.HK), Chang'an (02333.HK), and Zero Run (09863.HK) fell 2.6% to 2.8%.
Several consumer and domestic demand stocks have current downside pressure. Hisense Home Appliances (00921.HK) fell 10.4%, Haier Smart Home (06690.HK) fell 5.4%. The Chinese mainland launched a price war on purified water, and Master Kong (00322.HK) and Nongfu Spring (09633.HK) fell 6.5% and 7.4% respectively, with Nongfu Spring being the biggest blue-chip plunge. Li Ning (02331.HK), Haidilao (06862.HK), and Tsingtao Brewery Co. Ltd. (00291.HK) fell 3.4%. Pharmaceutical stocks also fell, with Wuxi Biologics (02269.HK), Luye Pharma Group Ltd. (02186.HK), Fosun Pharma (02196.HK), Pharmaron (03759.HK), CanSino Biologics Inc. (06185.HK), and Cango Inc. (09926.HK) falling more than 4%. Beigene Ltd. (06160.HK) fell 5.7%.
Resource and metal stocks are trending downward. MMG Ltd. (01208.HK) fell 5.5%, Zijin Mining Group Co. Ltd. (02899.HK) fell 2.7%. Ganfeng Lithium Co. Ltd. (01772.HK) and Tianqi Lithium Corp. (09696.HK) gave back 5.5% and 6.4% respectively. China Shenhua Energy Co. Ltd. (01088.HK) fell 5.5% with its exclusion. In addition, mainland real estate stocks China Overseas Land & Investment Ltd. (00688.HK) and Longfor Group Holdings Ltd. (00960.HK) fell 3.7% and 3.9% respectively, while China Vanke Co. Ltd. (02202.HK) and Country Garden Holdings Co Ltd. (02007.HK) fell more than 5% and Greentown China Holdings Ltd. (03377.HK) fell 7.4%.
China Life Insurance Co. Ltd. (02628.HK) passed the intermediate profit distribution proposal and plans to have cash dividends account for no more than 30% of net profit. The stock fell 2.3% with the overall market. In other financial stocks, HSBC Holdings PLC (00005.HK) closed at HKD 68.3. Hong Kong Exchanges and Clearing Ltd. (00388.HKK), AIA Group Ltd. (01299.HK), and Ping An Insurance (Group) Company of China Ltd. (02318.HK) fell 1.7% to 2.3%.
Bosideng International Holdings Ltd. (03998.HK) reported a full-year net profit increase of 44% and increased its final dividend, and the stock price rose 5.3% for the day.