Hong Kong stocks mark worst year in a decade, China edges up

Hong Kong stocks rose on Friday but marked their worst yearly performance in a decade following China's regulatory crackdowns on tech firms.

While mainland-listed equities edged up thanks to gains in the new energy and property sectors.

The CSI300 index was unchanged at 4,923.30 points at the end of the morning session, while the Shanghai Composite Index gained 0.4 per cent to 3,632.14 points.

** For 2021, the CSI300 index lost 5.5 per cent while the Shanghai Composite index gained 4.6 per cent.

** Turnover in China's A-share markets is set to surpass a record created in 2015, while the total assets under management (AUM) of the country's mutual fund industry reached 25.3 trillion yuan (nearly AED 15 trillion) this year, hitting a record high.

** Boosting sentiment, the chairman of China's securities regulator said the country will stabilize and reform its capital markets next year.

** China's factory activity and services sector both edged up in December, even amid local COVID-19 outbreaks.

** Real estate developers gained 2.5 per cent on Friday after a central bank official said mergers and acquisitions in the property market will help firms lower debt.

** New energy shares rose 2.1 per cent, with the photovoltaic industry up 3.6 per cent. Agriculture and machinery stocks added 2 per cent and 1.5 per cent, respectively.

** However, gains were capped by losses in consumer staples, with liquor makers down 1.7 per cent.

** The Hang Seng index added 1.2 per cent to 23,397.67 points but slumped 14.1 per cent this year. The Hong Kong China Enterprises Index gained 1.7 per cent to 8,236.35 but posted the biggest annual drop since 2009 with a 23.3 per cent plunge.

** Tech giants surged 3.6 per cent, tracking overnight gains in their Wall Street-listed shares, with the NASDAQ Golden Dragon China Index soaring the most since November 2008.

** However, the tech index has plunged more than 30 per cent this year amid Beijing's sweeping crackdown.

** Outlook for the battered sector remained divergent, with some analysts seeing current valuations attractive while others thought the regulatory uncertainty remained an overhang.

** Healthcare gained 3.4 per cent on the day but lost 27.7 per cent in 2021.

** Mainland developers listed in Hong Kong gained 1 per cent, with Evergrande up 6 per cent.