Hong Kong stocks started with decent gains (the Hang Seng Index was up 0.5% in the opening minutes) but has since slid back, with the benchmark index now down 0.2%.
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.
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.