The Hang Seng Index slipped 0.1 per cent to 25,463.43 as of 11.10am local time. The Hang Seng Tech Index also dropped 0.1 per cent.
Car dealer Zhongsheng Group Holdings surged 5 per cent to HK$17.61, and gold producer Zijin Mining Group advanced 3 per cent to HK$15.65 after bullion prices rose to a record high, with investors seeking havens on concerns of fiscal deficits in the world’s major economies. Alibaba Group Holding added 0.7 per cent to HK$135.70. On the downside, household appliances maker Midea Group lost 2 per cent to HK$85.10 and Budweiser Brewing sank 1.9 per cent to HK$8.65.
Hong Kong stocks are taking cues from China’s onshore equity market, the world’s second-largest, which has seen bigger volatility after a blistering liquidity-fuelled rally drove the Shanghai Composite Index to a decade high last week. Mainland investors also hold sway over the city’s market, accounting for more than a fifth of daily turnover through the southbound investment channel of the cross-border exchange link programme.
“Hong Kong’s market is now dominated by sentiment [from mainland stocks] and southbound inflows,” said Shen Fanchao, an analyst at Zheshang International in Hong Kong. “Concerns about fundamental issues are still there, such as China’s weak economic data.”
