The Hang Seng Index slipped 1.8 per cent at 9.40am local time to 22,038.79, halting a record-setting surge since China unveiled its rescue plans on September 24. The Tech Index tumbled 3.7 per cent. Markets in mainland China are closed this week for a holiday.
E-commerce platform operator Alibaba Group Holding lost 1.8 per cent to HK$113, peer JD.com retreated 4.6 per cent to HK$176.50 and search engine operator Baidu declined 1.9 per cent to HK$113. Property developer Longfor slumped 7.6 per cent to HK$17.34 while China Resources Land slid 3.6 per cent to HK$30.50.
The Hang Seng Index’s 14-day relative strength reading zoomed past 90 this week, exceeding the 70-point threshold that technical traders rely on as a danger sign.
“What has happened in the past week has already reminded us about the epic bubble and burst in 2015,” Nomura analysts including Ting Lu said in a note to clients on Thursday. “A more sober assessment is required” as China’s current economic fundamentals are still weak, they added.
Other Asian markets were mixed. Japan’s Nikkei 225 Index rallied 2.6 per cent and Australia’s S&P/ASX 200 Index declined 0.1 per cent. South Korea’s markets are closed for a public holiday.
