my NEWS Hong Kong stocks slide as market intervention fades, market focuses on Budget; Li Auto jumps as profit hits record Investors are cautious ahead of Hong Kong’s annual budget on Wednesday amid speculation on property market incentives Chinese EV maker Li Auto surges 21 per cent after reporting a record quarterly profit The Hang Seng Index fell 0.4 per cent to 16,574.21 at the noon break, extending a 0.7 per cent decline over the previous two sessions. The Tech Index added 1 per cent and the Shanghai Composite Index rose 0.5 per cent. Tencent slumped 2.3 per cent to HK$280.60 and e-commerce operator JD.com retreated 1.9 per cent to HK$91.30. Baidu slipped 1.3 per cent to HK$106.10 and Meituan weakened 1.8 per cent to HK$79.70. Hang Lung Properties paced losses among developers with a 2.2 per cent drop to HK$8.38. Sun Hung Kai Properties lost 0.2 per cent to HK$76.45 and New World Development fell 0.8 per cent to HK$9.48. A three-week market rebound, fuelled by intervention by China’s state-run funds, is unravelling as the market turned its focus to the city’s Budget plans. The easing of curbs on property transactions, and the promotion of the tourism industry and capital inflows, are among speculated incentives to further entrench the city’s status. “Hong Kong stocks will still need to consolidate before sentiment fully recovers,” said Huang Kaihong, an analyst at Guotai Junan Securities in Hong Kong. “Investors should still stick to high-dividend bets now, such as phone carriers, energy and utility stocks” as a hedge against inflation and geopolitical risks. Other major Asian markets were mixed. Japan’s Nikkei 225 was little changed after closing at a record high for a second day, while South Korea’s Kospi dropped 0.4 per cent and Australia’s S&P/ASX 200 rose 0.1 per cent.
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