China, Hong Kong stocks decline, weighed by Meituan's softer guidance
China and Hong Kong stocks fell on Wednesday, as food delivery giant Meituan's cautious fourth-quarter guidance raised market concerns about the prospects for China's consumer spending recovery. ** The blue-chip CSI 300 Index dropped 0.7%, while the Shanghai Composite Index was down 0.3%.
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China and Hong Kong stocks fell on Wednesday, as food delivery giant Meituan's cautious fourth-quarter guidance raised market concerns about the prospects for China's consumer spending recovery.
** The blue-chip CSI 300 Index dropped 0.7%, while the Shanghai Composite Index was down 0.3%. ** Hong Kong's Hang Seng Index fell 2%, and the Hang Seng China Enterprises Index lost 2.2%.
** Hang Seng Index heavyweight Meituan slumped 11% after the firm on previous day said it expects fourth-quarter revenue growth for its core food delivery business to slow versus the preceding quarter, citing persistent consumer caution and warmer weather for the winter season hitting orders as reasons. ** Its shares fell to a 3-1/2 year low on Wednesday, despite the company promising a $1 billion buyback.
** Caroline Yu Maurer, head of China and specialised Asia strategies at HSBC Asset Management, expects China markets stay volatile in the near-term. ** "There is potential for further savings drawdown to support consumer spending, though confidence needs to clearly improve and is key to the outlook," she said.
** Meanwhile, analysts do not expect a quick turnaround in the property market in 2024, despite intensified policy support. ** "Homebuyers’ sentiments remain weak amid uncertain employment and income prospects," Fitch Ratings said in a report on Wednesday.
** Hong Kong-listed mainland developers dropped 4.4%. ** In mainland markets, real estate and insurance companies fell 2.6% and 2%, respectively, leading the decline.
** A Reuters poll on Wednesday expects that China's manufacturing activity likely contracted for a second consecutive month in November.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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