my NEWS Hong Kong stocks fall by most in a week as corporate earnings seen faltering amid China slowdown Latest earnings reports surprised by 7.2 per cent to the downside, with material producers, tech companies and banks the biggest culprits: Bloomberg data Chow Tai Fook and New World Development decline amid market concerns about family rift, succession issues The Hang Seng Index fell 1.4 per cent to 17,663.08 at the noon break, paring the gain for the week to 1.2 per cent. The Tech Index weakened 1.6 per cent while the Shanghai Composite Index retreated 0.5 per cent. Alibaba Group dropped 1 per cent to HK$76.50 and Tencent lost 1.4 per cent to HK$324.60. Online game operator NetEase slid 2.9 per cent to HK$176. EV maker BYD tumbled 4.6 per cent to HK$230.80, while Meituan slipped 2.1 per cent to HK$109.80 before its quarterly report card next week. “The concerns about corporate earnings have now returned to the market that was excited by China’s supportive measures and falling US Treasury yields,” said Wang Zheng, chief investment officer at Jingxi Investment Management in Shanghai. “Earnings cannot surprise investors to the upside, given the weak foundation for the economic recovery.” China’s economic growth will probably slow to 1 per cent this quarter on a quarter-on-quarter basis, decelerating from a 1.3 per cent increase for the previous three-month period, according to an estimate by analysts tracked by Bloomberg. The Hang Seng Index has slumped 11 per cent so far this year, the worst performer among the world’s major benchmarks this year, as overseas traders pull out of local stocks and concerns persist about the durability of China’s recovery amid the woes on the property market. Earlier, the billionaire Cheng family that controls the Chow Tai Fook quashed speculation about an internal rift and succession issues. The firm reported a better-than-expected 36 per cent jump in earnings last quarter, while revenue missed market consensus. New World Development, the family’s flagship property developer, slipped 0.6 per cent to HK$13.24. The stock tumbled 4.4 per cent on Thursday, after it traded without entitlement to a special dividend payout. Chow Tai Fook official denies rumours of family rift after patriarch’s interview Still, Hong Kong shares are set for a weekly advance thanks to advances earlier in the week, after investors bet improving US-China ties will dial down geopolitical tensions. Mainland Chinese authorities, including those in Shenzhen, have also unveiled steps to help arrest a slump in the housing market. Other major Asian markets were mixed. Japan’s Nikkei 225 climbed 0.9 per cent and Australia’s S&P/ASX 200 added 0.2 per cent, while South Korea’s Kospi retreated 0.5 per cent.
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