Investors cautious in Hong Kong due to weak China data and upcoming earnings reports.

From South China Morning Post: 2024-05-12 22:53:40

China’s aggregate financing dipped by almost 200 billion yuan in April, the first decline since 2017. Weak credit growth suggests high real interest rates for the economy, prompting calls for an interest-rate cut to lower funding costs. Producer prices fell by 2.5%, marking 19 straight months of decline, while consumer inflation accelerated to 0.3%.

Hong Kong stock rally faces challenges as companies like Alibaba, Tencent, and Meituan report first-quarter earnings. Investors await key China economic data release this Friday. Alibaba rose 1.4% ahead of their earnings report, while Tencent added 0.4%. Reach Machinery surged 49% on its first day of trading in Shenzhen. Other Asian markets retreated, with Nikkei 225, Kospi, and S&P/ASX 200 all slipping.



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