Hang Seng Index Drops for Second Day, Closes 301 Points Lower

　　Image Source: cw

　　Mainland China's recently announced fiscal stimulus policies lacked direct measures to spur economic growth, leading to market disappointment. The renminbi weakened to a three-month low, and Octobers CPI growth was close to zero, reflecting persistent deflationary pressures. Hong Kong stocks opened lower and continued to slide, with the Hang Seng Index reaching as low as 20,151.38 points during the morning session, while the China Enterprises Index also hit a low of 7,242.97 points, both marking the lowest levels since October 18. Overall market turnover decreased, while southbound capital inflows marked their highest net inflow in four days.

HSI Performance

　　The Hang Seng Index opened 470 points lower today, with fluctuations within a 354-point range, hitting an intraday low of 576 points down. The index closed down 301 points, or 1.45%, at 20,426 points, with a trading volume of HKD 204.3 billion, down 12.34% from the previous day and the lowest since November 5. The China Enterprises Index fell 105 points, or 1.42%, to 7,355 points; the Hang Seng Tech Index dropped 0.35%, closing at 4,651 points.

Blue-chip and Tech Index Overview

　　Among blue-chip stocks, 14 gained, 62 declined, and 6 remained flat. The biggest gainer was Zhongsheng Group (0881), up 21.41% to close at HKD 18.94, while the largest decliner was Sun Hung Kai Properties (0016), down 5.47% to HKD 78.7. Within the tech index, 13 stocks gained and 17 declined, with Hua Hong Semiconductor (1347) rising the most, up 7.21%, while ASMPT (0522) had the largest drop, down 4.02%.

Market Technicals and Southbound Capital Dynamics

　　The Hang Seng Index fell below its 10-day moving average (20,612.69 points) and 20-day moving average (20,551.62 points), while the Hang Seng Tech Index also briefly dipped below both averages. Southbound capital net inflows reached HKD 9.865 billion, reversing previous single-day outflows, and marking the highest net inflow since November 6.