Hong Kong’s benchmark stock index fell 0.3% in the morning as Chinese real estate stocks mixed in the wake of yesterday’s plunge amid continued concerns over possible defaults this week by developer China Evergrande Group. It ended at 24,022.12. Macau casino stocks have rebounded and electric car makers have fallen.
China Evergrande Group, the world’s most debt-rich developer, fell another 3.5% to HK $ 2.22. The stake fell 88% from its recent peak in January, causing protests from individuals demanding debt repayment and erasing much of the property of its billionaire chairman, Huykine. S & P warns of default this week.
But other real estate developers were mixed. Guangzhou R & F recovered 5% after major shareholders Li Sze Lim, a billionaire in Hong Kong, and Zhang Li, a billionaire in mainland China, promised $ 1 billion in funding to the company (see related article here). .. Country Garden, dominated by billionaire Yang Yan, was up 6.9%% to HK $ 7.00.
The number of financial institutions affiliated with Guangdong Province, the home of the Evergrande Group, continues to decline. Among them, government-backed insurance company Pinan was down 3.3% to HK $ 49.65. The stock is now halving from its recent high of HK $ 103.10 in January. China Merchants Bank fell another 1.7% to HK $ 56.50.
Macau’s casino stock was hit earlier this month by concerns over new government regulations related to renewing licenses for Macau operators. Among them, Las Vegas Sands subsidiary Sands China increased by 4.5% to HK $ 15.76. Wynn Macau, a subsidiary of Wynn Resorts, was up 3.6% to HK $ 6.11.
The number of tech stocks in the limelight in the crisis surrounding Evergrande has dropped significantly. Alibaba was down 2.4%, Meituan was down 3.2% and Tencent was down 1.8%.
Electric car maker Li Auto fell 7.7% to HK $ 10.2.40 yesterday after Covid-19 warned that it would delay parts shipments from Malaysia and reduce expected deliveries. BYD, the industry leader, was down 2.4% to HK $ 238.
The stock exchanges in mainland China will be closed today due to the festival in mid-August. The Hong Kong Stock Exchange will be closed tomorrow.