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Hong Kong stocks extended losses to hit 14-month low

By Mensholong Lepcha

05:15, 30 November 2021

Person walks past a stock screener board in China
Person walks past a stock screener board in China – Photo: Shutterstock

Hong Kong stocks extended losses to hit a 14-month low as tech and real estate stocks dragged the market lower on Tuesday.

Benchmark Hang Seng Index fell 2% to 23,365.90 after lunch and was on track to close lower for a third straight session on Tuesday. Hang Seng TECH Index and Hang Seng Mainland Properties Index fell over 2% each on Tuesday.

Stock market in Hong Kong has been weak throughout the year, down over 15% in 2021, following Beijing's pressing regulatory action on China's private sector, cash crunch among Chinese property developers and a nationwide power shortage. Investor sentiment has further soured due to the emergence of the latest Omicron Covid-19 variant amid China's zero-Covid tolerance policy.

Tech, property stocks fall in Hong Kong

Late on Monday, Hong Kong authorities said they plan to expand border restrictions banning entry to non-residents from additional 13 countries including Australia and six European countries.

Property developer China Resources Land was the top intraday percentage loser in Hong Kong on Tuesday, down over 5%. Food delivery firm Meituan fell over 4% to hit a near eight-week low. E-commerce giant Alibaba Group declined 3.4% to emerge among the top 10 losers by Tuesday afternoon.

Meanwhile, Australia’s benchmark S&P/ASX 200 Index closed 0.7% higher at 7,297.40 on Tuesday. S&P/ASX 200 Financials Index rose 0.7% to 6,313.80, a day after banking regulator Australian Prudential Regulation Authority (APRA) released its new bank capital framework which requires banks to ensure existing high levels of capital adequacy are maintained.

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APRA’s new rules

Australian financial conglomerate Macquarie Group flagged an AUD2.2bn ($1.57bn) hit to its surplus capital due to APRA’s latest reforms, while Commonwealth Bank of Australia said it will disclose the impacts related to the new reforms at its full-year results presentation.


15,797.90 Price
-1.250% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 1.8


4,564.40 Price
-0.710% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.7


36,141.20 Price
-0.360% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 2.2


16,677.70 Price
-1.240% 1D Chg, %
Long position overnight fee -0.0261%
Short position overnight fee 0.0042%
Overnight fee time 22:00 (UTC)
Spread 5.0

Macquarie Group investors were unfazed by the news pushing the stock up by 1.7%. Commonwealth Bank of Australia, however, lost 0.6% on Tuesday.

Westpac Banking erased gains to fall over 1% on Tuesday. The “Big Four” bank said it agreed with the Australian Securities & Investment Commission to pay penalties of AUD113m ($80.72m) for charging fees to deceased customers, among others.

Japan recovers, South Korea slumps further

Elsewhere, Japan’s Nikkei 225 Index bounced back from an over six-week low to inch 0.4% higher by Tuesday afternoon.

Topix-17 Transportation & Logistics and Topix-17 Energy Resources indices were the top performing sectoral indices on Tuesday, up 2.3% and 2%, respectively.

Meanwhile, South Korea’s KOSPI index lost 1.2% on Tuesday to take its losing streak to six straight sessions as the emergence of the Omicron Covid-19 variant continues to unnerve investors.

Read more: Macquarie Group (MQG) flags Read more: Macquarie Group (MQG) flags $1.57bn hit on banking reforms.57bn hit on banking reforms

Markets in this article

Alibaba Group
70.9 USD
-1.2 -1.670%
Australia 200
7107.0 USD
-36 -0.500%
Australia 200
7107.0 USD
-36 -0.500%
Australia 200
7107.0 USD
-36 -0.500%
Australia 200
7107.0 USD
-36 -0.500%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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