China Connect plunges, high-tech earnings disappoint - caution towards the second Trump administration.

November 22, 2024 18:32 JST
CSI 300 index down 3.1% - largest decline since October 9
"No improvement from real estate and stocks to consumer"
Chinese stocks plummeted on the 22nd. While caution towards the second Trump administration was growing, the earnings of technology companies were disappointing, causing the market sentiment to deteriorate further.
Mainland China's CSI 300 index of A-share stocks closed down by 3.1%, marking the largest decline since October 9. The Hang Seng China Enterprises Index, composed of Mainland China stocks listed in Hong Kong, fell by 2.1%, marking the second consecutive weekly decline.
The Hang Seng Tech Index, which consists of Chinese technology stocks listed in Hong Kong, dropped by 2.6%, exceeding a 20% decline from the high in October, signaling a technical bearish market.

China's stock market has been declining since the peak in October, with growing dissatisfaction regarding the pace of the Chinese government's fiscal stimulus measures and increasing concerns over U.S.-China tensions.

The performance of the consumer-related indicators, such as the online retail company PDD Holdings and the online search giant Baidu (Baidu), fell short of expectations, worsening the sentiment further. Baidu's stock price recorded a temporary drop of over 10% in the Hong Kong market.
Stephen Leon, Executive Director of UOB Kay Hian (Hong Kong), stated that investors have realized that 'nothing has improved from real estate and stocks to consumption. There were no positive surprises from corporate profits.'