Hong Kong stocks dropped to near a one-month low as China’s lacklustre economic data triggered a sell-off, while the US Federal Reserve’s imminent easing cycle helped limit losses.
The Hang Seng Index lost 0.6 per cent to 17,256.80 as of 10:40am local time, while the Tech Index declined 0.9 per cent. Mainland markets are closed through Tuesday for a holiday.
E-commerce company Alibaba Group Holding lost 1.3 per cent to HK$81.6, rival JD.com dropped 2.6 per cent to HK$101.60, while Tencent weakened 0.5 per cent to HK$372.80. EV giant BYD slipped 0.6 per cent to HK$238.40, while developer China Resources Land tumbled 5 per cent to HK$18.62.
Chinese industrial production, retail sales and fixed asset investment all fell short of expectations for August, while home prices reported their steepest annual decline in nine years. Meanwhile, August credit growth also eased, led by a sustained decline in demand among households and companies.
The data “amplify the concerns of further deterioration in growth momentum and confidence and risks of a liquidity trap,” analysts at Barclays said in a note over the weekend.
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