Hong Kong Market extends losses

Hong Kong stock market finished session down on Monday, 13 December 2021, after reversing early gains, with optimism over Beijing's front-load policy support pledges offset by concerns over the health of China's property sector and reports that Chinese artificial intelligence start-up SenseTime Group would withdraw its HK$767 million initial public offering after it was placed on a U.S. investment blacklist. Market sentiment was also dampened by worries over a new coronavirus outbreak in China's eastern Zhejiang province.

At closing bell, the benchmark Hang Seng Index declined 0.17%, or 41.14 points, to 23,954.58. The Hang Seng China Enterprises Index dropped 0.32%, or 27.19 points, to 8,551.14.

The market had risen in morning trading, bolstered by stimulus hopes after China's top leaders vowed to prioritise economic stability in 2022. China's top policymakers concluded its Central Economic Work Conference on Friday by pledging to keep economic growth within a reasonable range and maintain social stability. Beijing has pledged to front-load policies to shore up the economy next year, as leaders remained on high alert against strong headwinds at the tone-setting annual central economic work conference that concluded on Friday. Beijing also hinted it would go easier on regulation of big private players after a heavy-handed crackdown this year jolted domestic markets, and excessive capital growth may instead be curbed with a type of 'traffic-light' mechanism

But the bullish mood faded in the afternoon trading, with concerns over China's indebted property sector heightened by slumps in Shimao's shares and bonds amid renewed concerns of the developer's financial health.

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