Hong Kong Stocks extend losses to second day

Hong Kong stock market finished lower for a second day on Friday, 05 March 2021, as investor sentiment was dented by following negative cues from Wall Street overnight amid continued concerns over a recent surge in U.S. bond yields and further rise in U.S. long-term interest rates. However, market losses capped, as China on Friday restored its annual economic growth target, setting it at above 6%, and pledged to create more jobs in cities than last year, as the world's second-biggest economy emerged from a year disrupted by the effects of COVID-19.

At closing bell, the benchmark Hang Seng Index dropped 0.47%, or 138.50 points, to 29,098.29. The Hang Seng China Enterprises Index shed 0.29%, or 33.36 points, to 11,292.22.

 

The National People's Congress, or China's annual legislative meeting, opened in Beijing. In a work report delivered by Premier Li Keqiang, China set a super low threshold on economic growth for 2021 at above 6%. China also curtained its budget deficit to 3.2% from 3.6% a year ago.

Technology stocks bore the brunt of selling, with smartphone maker Xiaomi and Techtronic Industries retreating by at least 3%. PetroChina added 3.2% after OPEC announced plans to keep output unchanged.

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