Hong Kong stocks retreat from four-year high as investors pocket gains

[HONG KONG] Hong Kong stocks fell on Friday (Oct 3) as investors locked in gains after the benchmark index hit a new four-year high in the previous session.

At the close, the Hong Kong benchmark Hang Seng was down 0.54 per cent, snapping a three-day winning streak.

Shares of tech giants, which had surged in the previous session, fell 0.9 per cent.

Automakers BYD and Xpeng dropped 4 per cent and 2.8 per cent, respectively. Short-video app Kuaishou lost 3.4 per cent.

Hong Kong-listed mainland property firms were among the worst performers, down 1.3 per cent.

Market participants attributed Friday’s decline to some profit-taking, given that the Hang Seng logged five consecutive monthly gains since May and has surpassed the key 27,000 level.

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Short-term volatility aside, some analysts believe Hong Kong stocks’ bull run still has legs.

“Valuations in Chinese equities remain very attractive and the rapid development of the country’s huge tech sector has generated a lot of interest,” Sandy Pei, senior portfolio manager for Asia ex-Japan at Federated Hermes, said in a note.

Mainland China markets are closed from Oct 1 to Oct 8 for the Golden Week holiday. REUTERS