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Tuesday, Oct 04, 2022

Hong Kong shares down on Alibaba, losses limited by property

Hong Kong shares down on Alibaba, losses limited by property

Hong Kong shares ended the session lower on Friday, dragged lower by Chinese e-commerce giant Alibaba after it reported disappointing earnings.
** At the close, the benchmark Hang Seng index was down 1.07% to 25049.97 points, while the Hang Seng China Enterprises Index lost 0.7%, to 8,970.67 points.

** Analysts attributed the fall to disappointing earnings from Chinese e-commerce giant Alibaba,, which heightened worries about Beijing’s broad regulatory crackdown and slowing growth in the world’s second-biggest economy.

** Shares of Alibaba dropped by 10.71% to HK$139.3 at the close after the company forecast annual revenue to grow at its slowest pace since its 2014 stock market debut as second-quarter results missed expectations due to slowing consumption, increasing competition and a regulatory crackdown.

** “Asian equities are facing turbulence as a confluence of powerful headwinds is building -- a slowing China, higher commodity prices at the wrong time of the business cycle, and a mild rebound in household demand,” said Sanjay Mathur, chief economist for Southeast Asia and India at ANZ.

** Broad market losses were somewhat limited by gains in the property sector on Friday afternoon, with an index gauging real estate firms bouncing 0.52% at the close, as some market participants were discussing possible policy easing for the battered property industry.

** China’s property sector, a major driver of economic growth, has weakened sharply this year as Beijing cracks down on speculation to lower financial risks.

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