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

HONG KONG: Hong Kong stocks fell on Friday as investors locked in gains after the index hit a new four-year high in the previous session.

• By the lunch break, the Hong Kong benchmark Hang Seng was down 0.87%.

• Shares of tech giants, which had surged in the previous session, led the declines on Friday, falling 1.4%.

• Automakers BYD and Xpeng dropped 4.5% and 3.9%, respectively.

• Hong Kong-listed mainland property firms were also among the worst performers, down 1.5%.

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

• 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 October 1 to 8 for the Golden Week holiday.