Hong Kong and mainland Chinese stocks fell on Wednesday, led by oil and commodities firms after drop in crude oil prices and as investors took profit ahead of Tencent’s third-quarter result.
The Hang Seng Index dropped for a second day, falling 0.76 per cent or 222.05 points to 28,930.07 by noon, while the Hang Seng China Enterprises index was down 1.46 per cent or 169.48 points to 11,432.21.
“Southbound investors are taking profit in key stocks for financials, autos and technology. They want to lock in profit ahead of Tencent’s results,” said Kingston Lin King-ham, a director at AMTD securities brokerage, referring to mainland Chinese investors buying Hong Kong shares through the Stock Connect scheme.
Internet giant Tencent lost 0.77 per cent to HK$385 and was the most heavily traded stock ahead of its third-quarter results later on Wednesday.
Semiconductor firm SMIC slid 6.65 per cent to HK$12.66 after it said net profit declined 77.2 per cent to US$25.9 million for the third quarter from the same period the previous year. Credit Suisse lowered its rating on the stock to underperform, citing a slow recovery and low gross profit.
Geely Auto retreated from its record high, falling 2.66 per cent to HK$27.45.
Financials AIA, Ping An and Industrial Commercial Bank of China together knocked 19 points off the Hang Seng Index, falling 0.76 per cent, 1.66 per cent and 1.30 per cent respectively.
PetroChina was the worst performing blue-chip, sliding 3.32 per cent to HK$5.24, Sinopec fell 1.42 per cent to HK$5.55 and CNOOC dropped 2.94 per cent to HK$10.58.
Aluminium company Chalco was down 2.43 per cent to HK$5.61 and Jiangxi Copper eased 1.31 per cent to HK$12.08.
However electric car firm Hybrid Kinetic Group climbed 6.15 per cent to HK$0.207 after the resumption of trade. The stock had been suspended since April 3 pending the announcement of its financial results for 2016 and an audit confirmation of its prepayment to suppliers.
The Shanghai Composite Index fell 0.72 per cent or 24.51 points to 3,405.04 while the CSI 300 – which tracks large cap firms listed in Shanghai and Shenzhen – dropped 0.81 per cent or 33.05 points to 4,066.30.
The Shenzhen Composite Index lost 1.27 per cent or 25.74 points to 2,000.04 while the Nasdaq-style ChiNext shed 1.66 per cent or 31.50 points to 1,865.22.
All three major US indices fell on Tuesday as General Electric shares plunged for a second straight day and the fall in oil prices hit energy stocks.
Oil declined further to trade near US$55 a barrel on Wednesday, after dropping by 1.87 per cent on Tuesday in its biggest slide in five weeks.
The Dow Jones Industrial Average fell 0.13 per cent to 23,409.47, the S&P 500 dropped 0.23 per cent to 2,578.87, and the Nasdaq Composite eased 0.29 per cent to 6,757.60.
Other Asian markets were also lower on Wednesday mid morning. South Korea’s Kospi dropped 0.28 per cent, Australia’s All Ordinaries lost 0.31 per cent and Japan’s Nikkei 225 was down 0.6 per cent.