Hong Kong stocks fall as Asian fund managers show no urgency to chase the market amid Chinese policy support and intervention

Hong Kong stocks fall as Asian fund managers show no urgency to chase the market amid Chinese policy support and intervention

Hong Kong Shares fell and struggled to maintain a successful start to the Year of the Dragon, signaling new economic headwinds in the region. A survey found that Asia's biggest asset managers are not investing again in stocks despite China's political support.

The Hang Seng Index fell 0.4 percent to 15,816.10 at 10:30 a.m. local time, giving up half of Wednesday's advance. The tech index fell 0.7 percent after rallying 2.2 percent the previous day. Financial markets in mainland China are closed this week for the Lunar New Year.

Tencent fell 1.2 percent to HK$286.60 and Meituan fell 0.9 percent to HK$70.45. Electric vehicle maker Li Auto fell 1.5 percent to HK$117.80 and developer Sun Hung Kai Properties fell 1 percent to HK$70.70, while home appliance maker Haier Smart Home fell 0.8 percent to 23.40 HK$ lost.

Ping An Insurance fell 0.4 percent to HK$33.30 after analysts at CLSA cut their rating on the company's shares with a price target of HK$31, according to Bloomberg data.

Stocks fluctuated this week after Japan slipped into a technical recession after an official report on Thursday showed the economy unexpectedly contracted in the last quarter. Stronger U.S. inflation data also dampened bets for Federal Reserve interest rate cuts at the March and May meeting, according to Fed fund futures.

Year of the Dragon: Hang Seng aims to reach 20,000 points as the means try to end the pain

In Asia, regional funds remained hesitant to chase Chinese stocks despite Beijing's efforts to contain a slide and restore market confidence, Bank of America said in a Feb. 13 report, based on a Feb. 2-8 survey People based who manage $331 billion of assets.

For the first time since the periodic survey began 17 months ago, more survey respondents expected a weakening rather than a strengthening in the coming year, the U.S. bank said. Most of them were willing to sit out or avoid the market, including 15 percent who wanted to reduce the risk of any price jumps, the report continued.

Otherwise, the major Asian markets were mixed. The Nikkei 225 in Japan rose 0.7 percent, while the S&P ASX 200 in Australia rose 0.5 percent and the Kospi in South Korea fell 0.1 percent.