AlexandrKudin @AlexandrKudin: "CHINA MARKETS 🇭🇰 The $HKG50..."

Czech Republic

CHINA MARKETS 🇭🇰 The $HKG50 index fell by 2.2% to 15,982.76 as of 11:15 local time, which is the lowest level since the beginning of November last year. The technology index lost 2.1 %, and the Shanghai Composite index declined by 0.9 % . - $0700.HK (Tencent) shares lost 2% to 299.40 Hong Kong dollars, $BABA (Alibaba-ADR) Group shares fell by 3.6% to 67.95 Hong Kong dollars, while JD.com e-commerce shares fell by 6.2% up to 98.35 hong kong dollars. The shares of the casino operator Macau Galaxy Entertainment declined by 2.1% to 41 Hong Kong dollars, while the shares of its competitor Sands China declined by 0.7% to 20.90 Hong Kong dollars. The shares of the manufacturer of sports clothing Li Ning fell by 11 % to 18.98 Hong Kong dollars. - Consumer prices fell 0.5% in November from a year earlier, after falling 0.2% in October, the statistics office in Beijing said on Saturday. According to BCA Research, this is the sharpest figure since the fall of 0.5% in November 2020. Deflation will damage profitability and corporate income, potentially leading to layoffs. - The Hang Seng index has fallen 7 % in the past two weeks, bringing losses this year to 18.4 %, the highest among the worlds major stock indices, the report said, showed Bloomberg data. Last week, Moody's downgraded China's rating outlook, as well as the forecast of many of the country's largest creditors. - On Wednesday there will be a meeting of the Fed Committee on setting rates. Policymakers are expected to maintain a key rate ranging from 5.25% to 5.5%, according to data collected by CME Group based on futures contracts for FED funds. WHAT CONCLUSION CAN BE DRAWN ? The recent sharp decline in Hong Kong stocks, exacerbated by China's unexpected fall in consumer prices, reflects growing concerns of deflation impacting corporate earnings. With the Hang Seng index hitting its lowest level since November last year and major technology stocks like Tencent and Alibaba experiencing significant losses, the market's vulnerability is evident. The impending Federal Reserve meeting adds to the uncertainty, as investors await decisions that could influence global economic dynamics. This downturn, coupled with China's credit rating downgrade by Moody's, underscores the challenging economic landscape, raising fears of prolonged market turbulence. - Most Asian markets traded mixed on Monday. Japan's $JPN225 rose 1.6 % , the Korean Kospi index lost 0.1 %, and the Australian $ASX (ASE Technology Holding -ADR) 200 remained virtually unchanged. HAVE A GOOD DAY

5 Mentioned

HKG50

0700.HK

Tencent

BABA

Alibaba-ADR

JPN225

ASX

ASE Technology Holding -ADR