Hong Kong stocks fell for the first time in three sessions. The Hang Seng Index was down 0.7% from the previous day at 23041.32, while HSBC shares also fell after the announcement of its July–September earnings.
In Hong Kong trading on the 27th, the Hang Seng Index fell 0.73% from the previous day to 23041.32 points, while the Hang Seng China Enterprises Index, which tracks mainland companies, fell 0.45% to 7766.91 points, marking the first decline in three sessions. Turnover was HK$178.3479 billion, as investors continued to assess China policy and the earnings outlook for Chinese companies.
Among Hang Seng Index constituents, Longfor Group Holdings fell 7.1%, HSBC fell 5.6% and Xiaomi Corporation fell 4.6%, standing out among the decliners. HSBC's July–September pretax profit rose 32.0% year on year, but fell short of investor expectations.
By sector, mainland Chinese property stocks were weak, with Shimao Group Holdings down approximately 8.9%, Guangzhou R&F Properties down approximately 5.9% and China Resources Land down 2.4%. Shimao's default on approximately $9.068 billion in debt was seen as a selling factor.
The automobile sector was also weak. In addition to Xiaomi, Chery Automobile fell 3.0%, Li Auto and Geely Automobile Holdings each fell 2.3%, and NIO Inc. ended down 2.0%. Passenger-car retail sales in the third week of October are expected to have declined sharply year on year.
Meanwhile, the nonferrous metals sector was relatively firm, with China Molybdenum, Xinjiang Xinxin Mining Industry, MMG and China Hongqiao Group among those trading with modest gains or modest declines.