HK shares hit one-year low, China dips as Meituan soft outlook weighs

** Shares of Hang Seng Index heavyweight Meituan slumped 12% after the company forecast its 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. ** Shares of Meituan fell to a 3-1/2-year low on Wednesday, despite the company promising a $1 billion buyback.

Hong Kong stocks slumped to a one-year low on Wednesday, while China shares also closed lower, as food delivery giant Meituan's cautious fourth-quarter outlook raised recovery concerns over China's consumer spending. ** The blue-chip CSI 300 Index dropped nearly 1%, while the Shanghai Composite Index was down 0.6%.

** Hong Kong's Hang Seng Index fell 2.1% and the Hang Seng China Enterprises Index lost 2.3%. ** Shares of Hang Seng Index heavyweight Meituan slumped 12% after the company forecast its 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.

** Shares of Meituan 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 to stay volatile in the near-term.

** "There is potential for further savings drawdown to support consumer spending (in 2024), 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%, while Hang Seng Tech Index retreated 2.3%.

** In the mainland markets, real estate stocks and automobile companies led the decline with a 3.3% and a 2.9% drop, respectively. ** A Reuters poll on Wednesday forecast that China's manufacturing activity likely contracted for a second consecutive month in November.