The choppy action comes as investors position themselves ahead of Chinese data out tomorrow, while also reacting to Chinese President Xi Jinping’s comments Saturday that the nation must adapt to a “new normal” of slower growth.
On the upside, Tencent — the second-heaviest-weighted name on the Hang Seng — is up 2.3%, rebounding from some large losses last week, and possibly getting some support from Credit Suisse’s recommendation to by the shares and sell chip makers (in a note cited by Dow Jones Newswires).
Outside the index, auto makers BYD and Great Wall Motor are also enjoying a rebound, up 1.6% and 2.6%, respectively. Great Wall suffered some particularly vicious selling last week on news it was again delaying the launch of its long-awaited sports utility vehicle.
The property sector is mixed, with Agile down 1.2% after reporting a drop in its April pre-sales, while some Hong Kong-focused real-estate firms are seeing modest strength (Henderson Land up 0.7%, Sun Hung Kai up 0.2%), perhaps finding a little support from news that the Shouson Hill luxury-housing site received a record number of bids (this, according to Kim Eng Securities).
Over on the mainland, however, the Shanghai Composite is holding on to a 0.5% gain, with banks and resource shares mostly higher (Jiangxi Copper is up 2%, for instance, even as its Hong Kong shares drop 1.2%).
Baoshan Iron & Steel is among the Shanghai advancers, even as it reportedly cuts its June prices for some steel products.