HSI Index Falls 392 Points, Longfor Properties Down 16 Percent, Cathay Pacific Posts Interim Loss

By David Wong
David Wong
David Wong
August 10, 2022 Updated: August 10, 2022

Hong Kong Hang Seng Index fell 392 points on Aug. 10, Longfor July sales contracted 26 percent month-on-month, and the stock price collapsed by more than 16 percent. Cathay Pacific called for lifting entry quarantine restrictions as soon as possible.

The Hang Seng Index opened 46 points lower on July 10, then the decline continued to decline during the morning session, and even more strongly in the early afternoon, but recovered towards the end of the day. The high of the day was minus 46 points, the lowest of the day fell 534 points, and the final close at 19,610 points, down 392 points (or 2.0 percent), with a turnover of HK$89.2 billion (US$113 billion). The H-Share Index fell 2.2 percent, and the HSI Tech Index fell 3.0 percent.

Tencent (00700) fell 0.8 percent, Alibaba (09988) fell 1.8 percent, Meituan (03690) fell 3.6 percent, Jingdong (09618) fell 4.5 percent, Hong Kong Stock Exchange (00388) fell 2.3 percent, HSBC Holdings (00005) fell 0.3 percent; the best and worst blue chips were China Mobile (00941) up 1.2 percent and Longfor (00960) down 16.4 percent.

By industry group, agricultural product stocks outperformed today, with WH Group (00288) down 1.8 percent, COFCO Jiajiakang (01610) down 0.7 percent, and China Yurun Food (01068) up 5.7 percent.

In July, Longfor’s cumulative contracted sales attributable to shareholders’ equity fell by 26 percent month-on-month to 11.85 billion yuan, down 38 percent year-on-year. Mainland property stocks were generally down, with Country Garden (02007) down 7.2 percent, R&F (02777) down 5.6 percent, and Greentown China (03900) down 2.4 percent.

Cheung Kong (01113, down 1.3 percent) officially named the 41-floor Hutchison Building redevelopment project “Cheung Kong Center II.”

Cathay Pacific (00293, up 0.9 percent) lost HK$5 billion (US$640 million) in the first half of the year and did not pay dividends. It called for the lifting of entry quarantine restrictions as soon as possible, saying that Hong Kong will take time to restore its international hub status.

Prudential (02378, down 1.6 percent) as mid-term new business profit fell 5 percent to about US$1.1 billion. As the epidemic gradually subsided, Hong Kong agency activities rebounded.

Goldman Sachs said that if widespread trade disruptions between China and Taiwan are disrupted, it can significantly impact the world, including China, and cause severe damage to the global technology supply chain.

As of press time, Brent crude oil was at US$95.7 per barrel, and the “three barrels of oil” were soft. PetroChina (00857) fell 0.3 percent, CNOOC (00883) fell 0.9 percent, and Sinopec (00386) fell 0.5 percent.

David Wong