Oct 8 2024, 16:07
The Hang Seng Index plunged 2,173 points, or 9.4%, finishing at 20,927 on Tuesday after surging in the previous two sessions, as investors took profits following the index’s rise to its highest level since early 2022.
Market sentiment was further dampened by disappointment over a media briefing in China, where no new major stimulus measures were announced. Analysts had expected Beijing to introduce more aggressive fiscal support, such as trillions of yuan in bond issuances and policies to boost consumption.
Instead, for next year, the government revealed a much smaller CNY 100 billion investment plan, compared to the current year’s CNY 1 trillion allocation. All sectors dropped, with tech stocks plunging 12,8%, following a sell-off in US tech shares. Consumer, financial, and property stocks also tumbled after the rally in Chinese markets faded. Semicon Manufacturing slipped the most (-17.7%), followed by Meituan (-15.0%), Geely Auto (-12.8%), and PICC Property & Casualty (-12.7%).
Source : Trading Economics
