December 04, 2023 at 12:06 am EST
HONG KONG,(Reuters) - China and Hong Kong stocks extended losses on Monday as economic data pointed to a slowdown in growth momentum, while a plunge in WuXi Biologics (Cayman) Inc shares on its disappointing forecast further dragged the markets down.
** The blue-chip CSI 300 Index dipped 0.3%, while the Shanghai Composite Index was largely flat.
** Hong Kong's Hang Seng Index dropped 0.6%, hovering around the lowest level in more than a year.
** China's pharma tech giant WuXi Biologics shares were suspended from trading in Hong Kong after it fell over 23%.
** The company on Monday said it expects to see lower revenue growth from development as its 2023 goal was overtly bullish to add 120 projects despite the downturn, and COVID-related revenue declined faster than expected.
** Hang Seng Healthcare Index lost 5% while healthcare companies listed in China A-shares fell 1.8%, following the WuXi Biologics announcement.
** Investor sentiment continues to be weighed by China's challenging growth environment reflected in the recent economic data.
** Mixed factory activity data for China in November suggests more stimulus will be needed to shore up economic growth
** Barclays analysts think the moderating manufacturing purchasing managers' index (PMI) and contracting services PMI, along with November high frequency data point to the fragility of the recovery as well as a faster deceleration of growth momentum in November.
** "We expect GDP growth to moderate to 2.8% on quarter in Q4, versus 5.6% in Q3, despite the year-end fiscal stimulus," they said.
** Meanwhile on property sector, a hearing into a liquidation petition against China Evergrande Group was adjourned in a Hong Kong court to next month, with the judge asking the embattled developer to hold discussions with relevant authorities on debt restructuring terms.
** Property stocks led the decline in China A-shares, down 2.3%.
(Reporting by Summer Zhen; Editing by Nivedita Bhattacharjee)
Sumber : Reuters
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