Hong Kong stocks slip as China COVID woes weigh
Hong Kong stocks slipped as soaring COVID cases in China disrupted economic activity and dented investor sentiment, while concerns over a hawkish U.S. Federal Reserve also dragged on regional…

SHANGHAI, Dec 23 (Reuters) - Hong Kong stocks slipped as
soaring COVID cases in China disrupted economic activity and
dented investor sentiment, while concerns over a hawkish U.S.
Federal Reserve also dragged on regional markets amid subdued
Chinese equities. ** China's blue-chip CSI 300 Index and Shanghai
Composite Index were little changed by the end of the
morning session. ** Hong Kong's Hang Seng Index lost 0.5%, and Hang
Seng China Enterprises Index declined 1.1%. ** For the week, the CSI 300 Index was down 3% so far, while
the Hang Seng Index edged up 0.6%. ** Other Asian shares eased, tracking a dive on Wall Street,
while the dollar firmed as strong U.S. data revived fears the
Fed will have to retain its hawkish stance to tame inflation. ** China is expecting a peak in COVID-19 infections within a
week, a health official said, with authorities predicting extra
strain on the country's health system even as they downplay the
disease's severity and continue to report no new deaths. ** "As China moves toward reopening, economic activities
have slowed down significantly amid national outbreaks, and this
weighs on investor sentiment," said Morgan Stanley analysts in a
note. ** Shares in semiconductors lost 1.7%, new
energy declined 1.3%, while consumer staples
added 1%. ** Tech giants listed in Hong Kong retreated 1.9%. ** "We don't think the rebound is finished, while the market
will focus more on the implemention of policies and the recovery
of fundamentals," said Max Luo, director of asset allocation at
UBS Asset Management in China, expecting more chances in China
market in 2023.
(Reporting by Shanghai Newsroom; Editing by Rashmi Aich)