HONG KONG: China and Hong Kong stocks fell on Wednesday, pressured by consumer and tech shares, as investors locked in profits from recent rallies while evaluating the impact of US tariffs. At the close, the Shanghai Composite index was down 0.23% at 3,371.92.
The blue-chip CSI300 index dropped 0.36%, with consumer staples and healthcare sector down 0.89% and 0.78% respectively, to lead the decline.
In Hong Kong, the Hang Seng Index was down 0.67% at 23,623.55, slipping for fourth straight session.
Hong Kong-listed tech giants underperformed, losing 2%, despite a 30% year-to-date surge in the sub-index.
“Technically speaking, the long-term bull run in the tech sector has not ended. But in the short term, trading is quite crowded, making it prone to sharp rises and falls,” Pacific Securities analysts said in a note. “Investors should consider taking some profits.”
Some sell-side analysts also noted the concerns over China’s deflationary pressure and tariff uncertainties may weigh on the sentiment in the near term.
China on Wednesday said it will take all necessary measures to safeguard its rights and interests, after US President Donald Trump increased tariffs on all US steel and aluminium imports.
Swiss bank Julius Baer on Wednesday raised its 12-month target for the Hang Seng Index to 26,500, citing its bullish view on consumer stocks given its under China’s stimulus focus.
On information technology, the bank expects some consolidation in the second quarter, but that will pave the way for another potential rally later in the year.
The smaller Shenzhen index ended up 0.13% and the start-up board ChiNext Composite index was weaker by 0.579%.
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