Hong Kong stocks rise as banks and real estate stocks gain; Alibaba weighs on the tech sector
Aug. 9 (Reuters) – Hong Kong’s Hang Seng Index rose on Monday, helped by a rebound in banking and real estate stocks, as signs of slowing economic growth in China fueled hopes of further easing by politics.
** Tech stocks fell, dragged down by Alibaba, which was rocked by allegations of sexual assault.
** The Hang Seng Index rose 0.4% to 26,283.40, while the Chinese Enterprise Index gained 0.4% to 9,313.97.
** Exit inflation from China’s factories climbed 9% in July, increasing at a faster pace than the month before and above expectations, adding to the strain on a slowing economy. ** Worrisome inflation data, along with the expected slowdown in domestic export growth last month, fueled expectations of further easing from Beijing.
** “We expect another 50bp RRR cut this year, while local government bond issuance may accelerate in the coming months to support infrastructure investment,” Morgan Stanley wrote, citing the need for increased political support to stabilize the labor market.
** Hong Kong’s financial index, dominated by Chinese bank heavyweights, rose 1%. The real estate index jumped 2.1%.
** But the Hang Seng Tech index fell 0.5%.
** Alibaba Group Holding Ltd fell 2.5%, after the Chinese e-commerce giant said on Sunday it had suspended several employees following allegations by an employee that she was sexually assaulted by her boss and a customer.
** Chinese food delivery giant Meituan added 3.1%, after joining a meeting with government regulators on improving the safety and labor rights of delivery workers. (Reporting from the Shanghai Newsroom; Editing by Subhranshu Sahu)