Hong Kong stocks tick down in thin trade as property, financials drag

Hong Kong stocks declined in light trading on Monday as property developers and financial stocks dragged the market. The benchmark Hang Seng index fell 0.08% by midday, while the Hang Seng China Enterprises Index remained unchanged. Shares in rate-sensitive sectors continued to decline, with real estate firms down 0.9% and finance subindex tracking major banks and insurers slipping 0.7%.

Semiconductor and PCB shares led the gains, with Kingboard Laminates rising 9% and Hua Hong Grace Semiconductor up 4%. However, the travel and retail sales data during the National Day holiday could give an early sign of consumer demand heading into the fourth quarter. Analysts noted that the Golden Week activity appeared underwhelming based on early data, with retail and tourism spend likely weakened per traveler despite steady footfall.

Shares of Budweiser Brewing Company APAC fell 2.1% to HK$5.555 in early trade, its lowest level since its September 2019 debut, as the brewer expects to record a $52 million non-underlying withholding tax charge due to internal restructuring in its Chinese mainland subsidiaries to improve capital efficiency.