Hong Kong Market falls 0.5%

Hong Kong share market finished volatile session in the negative territory on Monday, 19 December 2022, as rising COVID-19 infections in the country offset commitments from the government to shore up economic growth.

At closing bell, the benchmark Hang Seng Index dropped 97.86 points, or 0.5%, to 19,352.81. The Hang Seng China Enterprises Index was down 30.130 points, or 0.45%, to 6,604.62.

Stocks had earlier begun the week brightly after President Xi Jinping and other senior officials vowed to revive consumption and support the private sector at the two-day Central Economic Work Conference that ended on Friday, signalling a shift in policy from its pandemic-fighting focus in recent years.

 

Market however, failed to hold momentum after survey reports showed that Chinese business confidence was at its lowest level in nearly a decade, as the COVID-19 pandemic highlighted deepening cracks in the country's economy. The China is facing an unprecedented spike in COVID-19 cases after it scaled back several lockdown measures earlier this month, which markets fear could delay a broader reopening in the country.

China's National Health Commission reported 1,918 new cases on Monday, down from 2,028 the previous day. Nearly 1 million people in mainland China could die if the population is not protected by a fourth vaccination jab, the University of Hong Kong said in a study.

Macau casino operator Sands China tumbled 3.7% to HK$24.95 while rival Galaxy Entertainment lost 4.5% to HK$50.15. Alibaba Health lost 8% to HK$7.41, while Chinese drug maker Hansoh Pharmaceutical and CSPC Pharmaceutical slipped by 6.4 and 4.1%, respectively.

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