Chinese stocks fell on Thursday morning, while Hong Kong stocks soared to levels not seen during the 2008-09 global financial crisis, as Wall Street’s losses overnight and the resumption of the decline in the yuan have shaken the fragile confidence of investors. ** Hong Kong’s benchmark Hang Seng index fell 2.4% over the lunch break to 16,110.98 points, the lowest level since May 2009. The Hang Seng Tech index fell 3.4%, after Nasdaq-listed Chinese stocks fell 7.1% overnight.
** Chinese stocks fared better, amid signs of government-orchestrated efforts to stabilize markets at the ongoing Communist Party Congress. ** The blue-chip CSI300 index fell 0.7%, while the Shanghai Composite index lost 0.4%.
** Confidence in Chinese assets was shaken after the yuan resumed its slide against the dollar, as the yield gap between the United States and China widened further. The offshore yuan hit a record low of 7.2794 to the dollar on Thursday, before recovering some losses. ** Yuan Yuwei, hedge fund manager at Water Wisdom Asset Management, said the depreciation of the yuan is adding woes to the stock market in Hong Kong, where dominant sectors including banking, real estate and the internet are all in jeopardy. decline amid President Xi Jinping’s “common prosperity” campaign.
**”You can’t rule out a technical rebound at this level. But you don’t expect a trend reversal” unless global central banks start pumping liquidity again, he said. ** The market weakness also reflects disillusionment with Hong Kong Chief Executive John Lee’s first policy speech on Wednesday. In the speech, Lee prioritized improving competitiveness and attracting more foreign talent, but also stressed the need to strengthen national security in the Chinese-ruled city.
**An index that tracks Hong Kong-listed mainland property developers fell 1.4%. Moody’s released a report indicating that property sales in China will fall due to weak demand while financing conditions remain tight. **Fosun International fell 0.4%, erasing earlier gains, even after announcing a deal that will likely ease its liquidity stress.
** In China, most sectors fell, but defense stocks are firm.
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)