Hong Kong stocks traded near a one-year low as property developers and Macau casino operators advanced while Chinese Big Tech continued to flounder amid regulatory concerns without buying support from mainland investors.
The Hang Seng Index was little changed at 24,093.44 as of 10.42am local time. The benchmark slumped 3.3 per cent on Monday to the lowest level since October 2020. The Hang Seng Tech Index lost about 1 per cent. Markets in mainland China are shut for the Mid-Autumn holiday.
Alibaba Group Holding, the owner of this newspaper, slipped 1.7 per cent after earlier hitting as low as HK$145.50. Tencent Holdings, a favourite bet among mainland funds through Stock Connect, lost 1.2 per cent to HK$448.80 as the trading link is shut for a holiday.
Several Chinese developers surged after some of them unveiled efforts to raise cash amid a liquidity crunch. Guangzhou R&F surged 5.6 per cent to HK$4.54 after agreeing to sell assets to Country Garden for 10 billion yuan. Two of its major shareholders also agreed to lend the firm HK$8 billion.
Country Garden added 4.7 per cent to HK$6.86. Fantasia added 3.9 per cent after saying it has enough cash to repay bondholders next month.
China Evergrande fell 4.4 per cent to HK$2.18 as investors await its plan to reorganise its debt after the firm last week hired outside financial advisers to tackle its debt burden.
The Hang Seng Property Index rose 2.1 per cent from a five-year low. The gauge plunged 6.7 per cent on Monday amid concerns Beijing will next target the richest landlords to help fix the housing shortage in the city. Sun Hung Kai Properties gained 2.4 per cent while CK Asset Holdings and New World Development each advanced by 1.6 per cent.
Elsewhere, MGM China and Wynn Macau each climbed more than 4 per cent as concerns about tightening regulations in the gambling hub eased.Internet Explorer Channel Network