Mainland shares pull Hong Kong market lower

The Hang Seng Index ended Thursday in the red, as the mainland market underperformed on policy tightening concerns.

The local benchmark was hovering in negative territory throughout the day, opening down 28 points and dipping by as many as 369 points before paring back some its losses before the close.

It ended the day down 107 points, or 0.4 percent lower, at 28,793. Turnover was HK$124.5 billion.

Galaxy Entertainment was the biggest blue-chip loser of the day, tumbling 2.4 percent. Another casino operator, Sands China, fell 1.6 percent.

The Hang Seng Tech Index slumped one percent. Kuaishou shares were battered, sinking 7.8 percent after logging new lows during the day. Alibaba declined 1.7 percent. Tencent retreated more than 0.5 percent.

Markets across the border were also down, a day ahead of the country’s first quarter GDP announcement.

The Shanghai Composite index lost one percent, while the blue-chip CSI300 index edged down 0.6 percent. The Shenzhen Composite slipped 0.5 percent.

Analysts are expecting the world’s second largest economy to report a record year-on-year growth figure of 19 percent in the first quarter, bringing fears to traders that upbeat economic figures could bring further policy tightening.

Shares elsewhere were mostly higher, taking their cue from a tepid lead from Wall Street following positive report cards from banks.

The Nikkei in Japan inched up less than 0.1 percent. Seoul’s Kospi gained 0.4 percent. Taiwan added 1.25 percent. Australia put on 0.5 percent. Singapore was about 0.2 percent higher.