Hong Kong stocks close lower on tech slide, Evergrande warning

  • 8/26/2021
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Aug 26 (Reuters) - Hong Kong stocks snapped a three-day winning streak to close lower on Thursday, as tech shares dropped after a recent rebound, while China Evergrande Group’s profit warning hit property and banking shares. ** Many investors stand on the sidelines as they await the Jackson Hole Symposium for assurances that the U.S. Federal Reserve won’t be rushing in to tighten policy, a move that could draw capital away from emerging markets. ** The Hang Seng index fell 1.1% to 25,415.69, while the China Enterprises Index lost 1.5% to 8,937.29 points. ** The Hang Seng TECH Index slumped 1.9%, following three consecutive days of gains. ** Chinese tech shares had been the target of intensive selling amid Beijing’s relentless crackdown, before bargain hunters piled in earlier this week. ** “Many investors are asking us whether it is time to buy Chinese technology stocks. The short answer is no,” wrote Peter Garnry, head of equity strategy at SAXO Bank. ** “It will take time for foreign investors to come back and the ‘tail-risk’ that has happened in Chinese technology stocks will not be easily forgotten by investors.” ** Garnry added that buying can be an option only for “short-term traders with a high risk tolerance.” ** Property shares fell over 1%, after Evergrande , China’s most indebted property developer, forecast a slump of as much as 39% in its first-half profit. ** Evergrande’s shares tumbled 7.5% to a fresh low in six years, while Evergrande New Energy Vehicle slumped 18.7%. ** An index tracking financial shares fell nearly 1%, amid fears that lenders’ asset quality could suffer in China’s slowing property market, and a decelerating economy. ** Bucking the trend, Jinchuan Group International Resources Co shares surged 17% after reports Chinese battery giant CATL is seeking a stake in the company. (Reporting by the Shanghai Newsroom; editing by Uttaresh.V) Our Standards: The Thomson Reuters Trust Principles.

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