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Hong Kong Market falls as COVID infection surges

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Capital Market
Last Updated : Nov 08 2022 | 2:50 PM IST
Hong Kong share market finished session edged down on Tuesday, 08 November 2022 as sharply escalating COVID-19 cases and unexpectedly weak trade data offset optimism about an eventual economic reopening.

At closing bell, the benchmark Hang Seng Index fell 38.60 points, or 0.23%, to 16,557.31. The Hang Seng China Enterprises Index was down 33.60 points, or 0.6%, to 5,602.61.

Today's retreat followed a Chinese government report showing 7,323 new Covid-19 infections in mainland China, the most since April 30, challenging calls for an end to Beijing's zero-Covid policy. China's health authority said on Saturday it would unswervingly continue to enforce the stringent curbs.

Investors sentiments toward market dented further after China's trade data released on Monday showed that both China's exports and imports unexpectedly contracted in October - the first simultaneous slump since May 2020.

China's exports in October shrank 0.3% from a year earlier, a sharp turnaround from a 5.7% gain in September, according Chinese customs data released Monday. Imports declined 0.7% from a 0.3% gain in September. The overall trade figures resulted in a slightly wider trade surplus of $85.15 billion, compared with $84.74 billion in September.

Among blue chips, Alibaba Group Holding retreated 3.7% to HK$67.10 and Meituan slumped 2.8% to HK$148.80 while Baidu lost 2.6% to HK$83.65 after China's cybersecurity regulator hinted the curbs on the tech sector will remain. Budweiser declined 3% to HK$18.96. Limiting losses, Macau casino operator Sands China added 3.6% to HK$17.66 and Country Garden gained 2.1% to HK$1.44.

Shares of chip related companies declined after data showed China's chip imports slumped by 13% in the first 10 months, citing the US-China tech challenges on advanced chips. Hua Hong Semiconductor retreated 3% to HK$22.30 and Semiconductor Manufacturing International Corp dropped by as much as 0.8% before closing 0.4% higher at HK$16.94.

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First Published: Nov 08 2022 | 2:29 PM IST

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