(Bloomberg) — Chinese stocks declined Friday and were set to halt a five-week rally, weighed down by losses in Hong Kong-listed technology shares and a slew of disappointing earnings reports.
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The benchmark CSI 300 Index fell as much as 1.6%, on pace for its biggest drop since January, and the Hang Seng Tech Index tumbled as much as 4.4%. Equities were also hit by the sudden drop in the yuan to a four-month low.
The rebound in Chinese equities that started in early February appears to be running out of steam, with investors seeking strong corporate performance for the rally to sustain. Earnings performance so far has done little to allay investors’ concerns.
Chinese electric vehicle maker Li Auto Inc. was among the worst performers Friday after it lowered guidance for the first quarter, while the worse-than-expected results from Ping An Insurance Group Co. and CK Asset Holdings Ltd. have added to worries about earnings from the nation’s biggest financial institutions and property developers due next week.
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Ping An Insurance dropped the most in over a year after its net income lagged behind expectations, while CK Asset fell the most on record as analysts rushed to downgrade the stock after the company cut its dividend payout.
–With assistance from Mengchen Lu.
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