Hang Seng follows Wall Street down on worries about global economy; China Literature, SMIC soar in Hong Kong
- China Literature said it is working out copyright issues with authors, making for happy reading by investors
- Semiconductor Manufacturing International Corp. rockets up after posting huge gain in year-on-year first-quarter net profit
Hong Kong and mainland stocks fell Thursday, following US stocks down after the Federal Reserve chief warned of a rocky path ahead to economic recovery.
China Literature rocketed after management at Tencent highlighted future support for its e-reading spin-off in an earnings call. Semiconductor Manufacturing International Corp. also shot up after it posted a huge gain in year-on-year first-quarter profits.
The Hang Seng Index fell 1.5 per cent to 23,829.74, marking its third straight day of declines. The Shanghai Composite Index closed down 1 per cent at 2,870.34.
The sentiment in Hong Kong overall was bearish, as traders continued to worry about what’s in store for the world’s economies as they continue to feel the lash of the coronavirus.
US Federal Reserve chairman Jerome Powell warned overnight that “recovery may take some time to gather momentum,” and require additional stimulus from Congress to the trillions already poured into propping up the world’s top economy. He also ruled out lowering interests rates into negative territory as part of the central bank’s role in helping recovery.
