Hong Kong Stock Market Unable to Recover from Plunge Shock... No Coverage from Chinese Media

[Image source=Reuters Yonhap News]

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] The Hong Kong stock market closed lower on the 25th, unable to recover from the shock of the previous day's crash. The Chinese mainland stock market also ended the day in a downtrend amid growing anxiety and concerns over corporate regulations.

On the 25th at the Hong Kong Stock Exchange, the Hang Seng Index recorded 15,165.59, down 0.1% from the previous trading day. The Hang Seng Index had plunged 6.36% the day before.

The Hong Kong H Index, composed of mainland companies listed on the Hong Kong stock market, closed at 5,180.31, up 1.29% from the previous day. Although it escaped the previous day's (-7.30%) plunge, it was insufficient to recover the losses. Big tech companies that led the crash the day before, such as Tencent (0.1%), Meituan (2.4%), Alibaba (3.16%), and JD.com (Jingdong.com, 5.01%), turned to an upward trend and closed trading higher.

The mainland stock market declined. The Shanghai Composite Index showed a slight decrease (0.04%) to close at 2,976.28, and the Shenzhen Component Index fell 0.51% to close at 10,639.82.

The recent decline in Chinese companies' stock prices is interpreted as a result of President Xi Jinping securing a third term through the 20th National Congress of the Communist Party of China and placing his close aides in the top leadership. It reflects the judgment that zero-COVID policies, private enterprise regulations, and real estate regulations, which have previously damaged the Chinese economy, are unlikely to be resolved in the short term.

Bloomberg cited Hao Hong, Chief Economist at Grow Investment, saying, "The market is still undecided and selling pressure remains," adding, "It is unknown how far the market can fall, and there are very few investors buying now." Marvin Chen, a Bloomberg Intelligence analyst, explained to the news agency, "The possibility of a rebound like in March is low," and "The impact of the COVID-19 pandemic and the real estate sector downturn on consumer sentiment may still persist."

On the other hand, news of the market collapse the previous day was barely covered in mainland China. Economic media such as the People's Daily, Xinhua News Agency, Shanghai Securities News, China Economic Times, and Securities Times only briefly reported the market decline in short news items. They did not explain the background of the market crash, including concerns related to the results of the Party Congress.

This content was produced with the assistance of AI translation services.