Chinese, Hong Kong Stocks Sink on Real Estate Jitters By Investing.com & More Latest News Here – Up Jobs

By Ambar Warrick

Investing.com– Chinese and Hong Kong stocks led losses across Asia on Thursday, pulled lower by major real estate developers after a dire profit warning from Country Garden Holdings.

China’s bluechip index sank 0.9%, while Hong Kong’s index shed 0.7% by 23:52 ET (03:52 GMT). The index fell 0.5%.

Country Garden Holdings Company Ltd (HK:) was the worst performer in Hong Kong, losing over 5% after the that its profit for the first half of 2022 was expected to sink to between 200 million yuan and 1 billion yuan ($29.5 million and $147.5 million), down from 15 billion yuan a year ago, amid severe headwinds in the real estate market.

Other real estate firms, including Cinda Real Estate Co Ltd (SS:), Gemdale Corp (SS:) and Shantui Construction Machinery Co Ltd (SZ:) shed over 2% each. Steelmaker HBIS Co Ltd (SZ:) lost nearly 3%.

Country Garden’s warning indicates more trouble for China’s debt-saddled real estate sector. A downturn in the sector could potentially spill over to other aspects of the Chinese economy.

China is already struggling with slowing economic growth this year, stemming from a series of COVID-19 lockdowns. This has seen the government roll out a swathe of stimulus measures to help support growth.

Broader Asian stocks also fell on Thursday, tracking a after softer-than-expected from Target Corporation (NYSE:). Traders were also digesting that it eventually plans to lessen the pace of interest rate hikes as inflation comes closer to its target range.

Japan’s lost 0.9%, while South Korea’s benchmark fell 0.5%.

Australia’s index fell 0.3% after data showed the country’s job market . But Australia’s also fell to a 48-year low.

were flat ahead of a widely-anticipated by the central bank later in the day. The bank is expected to raise rates by 50 basis points to 3.75%.