Hong Kong Stocks Mixed; Evergrande Falls, Casinos Rebound, EV Makers Slide
Hong Kong’s benchmark stock index ended the morning 0.3% lower at 24,022.12 as China real estate shares turned mixed following yesterday’s plunge amid continuing worries about possible debt defaults this week by developer China Evergrande Group. Macau casino stocks rebounded and electric-vehicle makers fell.
China Evergrande Group, the world’s most indebted developer, lost another 3.5% to HK$2.22. Its shares have dropped 88% from a recent peak in January, spawning protests from individuals demanding debt repayment and erasing much of the fortune its billionaire chairman Hui Ka Yin. S&P this week warned of default on debt due this week.
Other real estate developers were mixed, however. Guangzhou R&F rebounded by 5% after its main shareholders, Hong Kong billionaire Li Sze Lim and mainland China billionaire Zhang Li, pledged $1 billion in financing support for the company (see related story here). Country Garden, controlled by billionaire Yang Huiyan, gained 6.9% % to HK$7.00.
A number of financial institutions with ties to Guangdong Province where Evergrande is based continued to fall. Among them, government-backed insurer Ping An lost 3.3% to HK$49.65; its shares have now declined by half from a recent high of HK$103.10 in January. China Merchants Bank fell another 1.7% to HK$56.50.
Macau casino stocks hammered earlier this month on concerns about new government regulations in connect with license renews for Macau operators gained. Among them, Sands China a subsidiary of Las Vegas Sands, rose by 4.5% to HK$15.76; Wynn Macau, a subsidiary of Wynn Resorts, rose 3.6% to HK$6.11.
Consumer-facing tech stocks out of the limelight amid the crisis surrounding Evergrande were largely lower. Alibaba lost 2.4%, Meituan fell 3.2% and Tencent declined 1.8%. (See related post here.)
Electric vehicle maker Li Auto, led by billionaire Li Xiang, dropped 7.7% to HK$102.40 after warning yesterday that Covid-19 would slow semiconductor shipments from Malaysia and reduce expected deliveries. Industry leader BYD fell 2.4% to HK$238.
Mainland China stock exchanges are closed today for the Mid-August Festival. The Hong Kong Stock Exchange will be closed tomorrow.
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