Hong Kong stocks slide for second week as Evergrande sell-off persists amid silence on debt status
- A bond coupon payment deadline passed on Thursday without any clarity from Evergrande, keeping market on edge
- More visibility is expected in the coming weeks as Chinese authorities walk a tight line between growth and reform, UBP says
The Hang Seng Index fell 1.3 per cent to 24,192.16 at the close of Friday trading, bringing the decline in the 60-member gauge to almost 3 per cent for the week. The Hang Seng Tech Index lost 2.2 per cent. In mainland China, the Shanghai Composite Index slipped 0.8 per cent in a holiday-shortened week.
Among the biggest decliners were glassmaker Xinyi Glass, which slumped 7.3 per cent to HK$23.40 while sportswear maker Li Ning slipped 5.4 per cent to HK$88.70. Countering losses, Ping An Insurance advanced 2.2 per cent to HK$54.25 while Meituan added 0.7 per cent to HK$244.40.
Evergrande tumbled 11.6 per cent to HK$2.36, giving up most of the 18 per cent relief rally on Thursday. The stock has slumped more than 80 per cent this year as survival hangs in the balance. The firm resolved a loan interest payment this week but was silent on an offshore bond interest due on Thursday.
The developer, which had liabilities of about US$305 billion on June 30 or 2 per cent of China’s GDP, roiled global markets this week amid concerns its potential default would trigger a deeper slowdown in the world’s second biggest economy just as global funds are rushing in, while fanning social disorder from angry homebuyers and investors.
