Hong Kong Hang Seng falls from 6-month high

Hong Kong share market declined from six-month high on Tuesday, 17 January 2023, as investors opted to book profit after official data showed that China's economy shrank to 3% in 2022, registering its second lowest growth rate in 50 years in the world's second-largest economy.

At closing bell, the benchmark Hang Seng Index declined 169.08 points, or 0.78%, to 21,577.64. The Hang Seng China Enterprises Index was down 36.30 points, or 0.49%, to 7,314.04.

China's economic growth in 2022 slumped to one of its worst showings in nearly half a century, with the fourth quarter hit hard by stringent COVID 19-related curbs and a property market slump, China's gross domestic product posted an annual growth of 2.9% in the fourth quarter, weaker than the 3.9% expansion seen in the third quarter, according to data from the National Bureau of Statistics (NBS)revealed on Tuesday. In the whole year of 2022, GDP growth was 3%, missing government's target of around 5.5%. NBS data also showed that retail sales dropped only 1.8% annually in December following a 5.9% decline in November. Industrial output increased 1.3% versus a 2.2% gain in November, and expanded by 3.6% year-on-year in 2022. China's fixed-asset investment went up 5.1% in 2022.

Among blue chips, e-commerce platform owner JD.com slipped 1.7% to HK$239.60 and search engine operator Baidu lost 1.6% to HK$132.10. Meituan slid 0.5% to HK$164.80. Macau casino operator Sands China tumbled 2.8% to HK$27.95 and WuXi Biologics slumped 6.1% to HK$69.40.

Two companies started trading in Hong Kong on Tuesday. Sanergy Group jumped 11% to HK$1.78 while property management firm Runhua Living Service Group tumbled 26% to HK$1.26.

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