China and HK stocks drop as investors focus on earnings; CATL slumps

China and Hong Kong equities declined on Wednesday, with weaker third-quarter profit growth at battery maker CATL and concerns about consumer demand weighing on sentiment, Business Recorder reported, citing Reuters. By midday, the CSI300 was down 0.7%, the Shanghai Composite had slipped 0.3%, and Hong Kong’s Hang Seng had lost 0.4%, despite a broader recovery in Asian shares.

CATL shares fell 10% in both Hong Kong and mainland markets after competition and slower growth in China auto sales weighed on its profit growth. Toymaker Pop Mart dropped 4% as investors anticipated disappointing third-quarter earnings, while liquor and new energy shares led losses and big data and cloud firms performed better. Investors were positioning around weak domestic demand ahead of earnings, while the report said policymakers were seen as unlikely to introduce stimulus soon, with exports supporting economic growth and policy focused on technology and industrial upgrading.