(Bloomberg) — Hong Kong’s benchmark stock gauge slumped into a technical correction as the city’s temporary suspension of BioNTech vaccinations fueled worries over the pace of its recovery from the pandemic. The in Asia on Wednesday, capping the fourth day of losses and taking its decline from a February 17 peak to 10%. Stocks in the commerce and and financials were the biggest losers on the gauge. All but three stocks on the measure fell. As one of Asia’s largest and most open equity markets, is particularly sensitive to shifts in global liquidity. Hang Seng’s recent slide has come as traders rush to sell pricey stocks amid rising bond yields. Earlier this month, China’s CSI 300 Index entered a technical correction on concerns over lofty valuations and potential liquidity tightening.
“The vaccination process will be slower than expected, resulting in a slower-than-expected recovery of the local economy,” said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd. “Also, traders are still worried about liquidity. in the U.S. and limited measures by China’s big market overhangs.” Mainland investors offloaded a net HK$6.9 billion ($888 million) of Hong Kong links with Shanghai and Shenzhen on Wednesday, the second day of selling and the biggest since March 9, according to data compiled by Bloomberg. Hong Kong and Macau temporarily suspended manufactured by BioNTech SE because of a packaging defect. That marks the latest setback for Hong Kong’s , slowed by public distrust in the Beijing-backed government.
ON WEDNESDAY, the HSI’s move formed a worrying signal to technical chart watchers as the index breached the neckline of a so-called bearish head-and-shoulders pattern, implying further downside. “Falling below the neckline will lead to heavier selling pressure — some technical analysis believers may start dumping shares,” Castor Pang, head of research at Core Pacific-Yamaichi InternationalLtd., said earlier in the day. “If the Hang Seng Index closed seen last November.” Meanwhile, rising volatility is also starting to impact investor appetite for Hong Kong’s IPOs and new listings in hot demand last year, with the days of the massive first-day pops likely .
On the positive front, Internet branded cars on Tuesday posted a worse-than-expected drop in 2020 earnings. halt. China’s CSI 300 Index lost 1.6% on Wednesday, closing at its since December 11. “U.S. Treasuries and A-shares more swing Hong Kong stocks for now,” said Tracy Chan, an analyst at KGI Asia.Tencent Holdings Ltd., which has the highest HSI gauge weight, reported better-than-expected earnings after closing markets. Geely Automobile Holdings Ltd. was the biggest loser on the benchmark, falling 12% on the second day of declines after China’s biggest maker of local,