Hong Kong stocks slump after weak earnings from Ping An and Li Ka-shing’s listed firms

Hong Kong stocks slump after weak earnings from Ping An and Li Ka-shing’s listed firms

22 Mar Hong Kong stocks slump after weak earnings from Ping An and Li Ka-shing’s listed firms

Posted at 02:46h in Asia by

Hong Kong stocks dropped by the most in two weeks and the benchmark gave up all its gains for the week, after a slew of disappointing earnings results from bellwether companies halted a rally triggered by a dovish US Federal Reserve.

The Hang Seng Index fell 1.8 per cent to 16,555.28 as of 10am local time, down 0.6 per cent for the week. The Hang Seng Tech Index slumped 3 per cent and the Shanghai Composite Index retreated 0.5 per cent.

Ping An Insurance tumbled 4.4 per cent to HK$33.95 after full-year earnings slid to the lowest in five years in 2023. CK Asset Holdings plunged 12 per cent to HK$32.30 and CK Hutchison Holdings lost 2.6 per cent to HK$39.35 after the Li Ka-shing owned companies both reported lower profits for last year. Meituan, China’s biggest on-demand delivery company, sank 3.6 per cent to HK$88.95.

“Ping An reported a muted set of 2023 results, with earnings, OPAT and EV missed despite solid NBV and stable DPS,” said Citigroup analysts in a post-results note which made downward revisions to its 2024 and 2025 earnings forecasts and lowered its share price target.

Investors have shifted their focus back to corporate earnings after digesting positive factors like China’s market support measures and Thursday’s Fed decision. Weak earnings risk derailing the rebound in the Hang Seng Index, which has risen 13 per cent from a January low through Thursday.

Other major Asian markets were mixed. Japan’s Nikkei 225 climbed 0.5 per cent, while South Korea’s Kospi retreated 0.2 per cent and Australia’s S&P/ASX 200 lost 0.4 per cent.

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