Hong Kong stocks declined for a second consecutive day as investors awaited US inflation data and progress on debt-ceiling talks, dampening market sentiment. State-owned Chinese lenders, including Bank of China and ICBC, were among the major losers as traders engaged in profit-taking activities. According to Bloomberg, US consumer prices are expected to rise by 5 percent in April. Longfor Group led the decline in property developers, while the rally in state-owned firms lost momentum.
The Hang Seng Index closed down 0.5 percent at 19,762.20 on Wednesday, following a 2.1 percent pullback on Tuesday. The Tech Index added 0.3 percent, while the Shanghai Composite experienced a 1.2 percent tumble. In New York, a gauge tracking US-listed Chinese stocks dropped 2.3 percent overnight.
Property developers such as Longfor saw a decline of 3.9 percent to HK$20.70, Country Garden retreated 1 percent to HK$1.97, and China Resources Land tumbled 3.2 percent to HK$34.55. Alibaba Health and Meitun both slipped 1 percent to HK$5.13 and HK$129.00, respectively.
