Hong Kong Market falls on China Covid situation

Hong Kong share market finished session lower on Friday, 25 November 2022, as investors opted to book profit made in the previous two sessions, amid concerns over worsening COVID-19 conditions in China even though the country's latest measures to support the beleaguered property sector.

At closing bell, the benchmark Hang Seng Index fell 87.32 points, or 0.49%, to 17,573.58. The Hang Seng China Enterprises Index dropped 21.25 points, or 0.35%, to 5,971.10.

Asia's largest economy is struggling with a record-high jump in daily COVID-19 cases, which saw the reintroduction of strict curbs in several major cities and also sparked public unrest in "iPhone City" Zhengzhou.

China has reported another record high of new local Covid-19 cases on Thursday, totalling 32,695, as cities across the country enforce measures and curbs to control outbreaks. Thursday's new cases set a daily record for a second consecutive day.

The continuous surge in Covid cases has rekindled traders' concern about the slowing economy, and doubts about whether more monetary easing policies could achieve its goal of stimulating growth.

Among blue chips, Meituan slid 1.7% to HK$136.60. Tencent Holdings lost 2.6% to HK$273 and Alibaba Group Holding sank 2.2% to HK$74.75. BYD weakened 2.8% to HK$172.30 and WuXi Biologics slipped 1.7% to HK$47.75.

Chow Tai Fook Jewellery Group tumbled 16% to HK$13.06 as the jewellery retailer reported a 7% drop in first-half profit from a year earlier.

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