Hong Kong’s Hang Seng Closes Lower as China Reports 8,335 New Covid Cases

Hong Kong’s Hang Seng closed lower on Wednesday after China reported 8,335 new Covid-19 cases for Nov 8 vs 7,691 a day earlier, along with weak economic data.

The Hang Seng Index fell 1.20%, or 198.79 points, to end at 16,358.52. 

Aside from domestic issues, traders were watching the results of the key midterm elections in the United States, where Republicans are now expected to take control of the House of Representatives.

Official data showed on Tuesday new covid cases increased in Guangzhou and other Chinese cities, with the global manufacturing hub becoming China’s next Covid-19 epicenter and putting the city’s ability to avoid a Shanghai-style lockdown to the test.

For the first time since December 2020, China’s factory gate prices fell in October, while consumer inflation slowed. These trends reflect weakening domestic demand and production disruptions in the face of strict COVID controls and a struggling property market.

National Bureau of Statistics (NBS) statistics released on Wednesday indicated that the producer pricing index (PPI) decreased 1.3% from a year ago, reversing the 0.9% gain seen the previous month and contrasting with the 1.5% drop predicted by a Reuters poll.

The Shanghai Composite Index lost 0.53%, or 16.33 points, to 3,048.17, while the Shenzhen Composite Index on China’s second exchange closed down 0.41%, or 8.30 points, at 2,011.51.