Hong Kong stocks slump to 3-week low as China growth jitters dampen sentiment
Caution prevails as investors weigh China’s growth prospects after key economic data showed a deceleration across the board
The Hang Seng Index closed 1.5 per cent lower at 25,235.41, a level not seen since November 21. The decline was broad-based, with all but eight stocks on the 89-member benchmark falling. The Hang Seng Tech Index slumped 1.7 per cent.
On the mainland, the CSI 300 Index slid 1.2 per cent and the Shanghai Composite Index retreated 1.1 per cent.
Alibaba Group Holding slumped 3 per cent to HK$144.20 and Tencent Holdings lost 1.1 per cent to HK$596.50. Gold producer Zijin Mining Group shed 4.4 per cent to HK$32.94 and aluminium maker China Hongqiao Group sank 2.8 per cent to HK$31.04. China Life Insurance declined 4.1 per cent to HK$27.38.
The risk-on mood waned as investors feared that China’s economic slowdown would deepen after key economic data showed a deceleration across the board in November. Retail growth weakened to the slowest pace since the Covid-19 pandemic, while fixed-asset investment continued to contract and a decline in home prices showed no signs of abating.
Investors also stayed on the sidelines ahead of the US labour market report for November due later on Tuesday. The data will include an estimated reading for October that was delayed by the longest-ever government shutdown. A strong reading would reduce the chances of monetary easing and could fuel anxiety over the stretched valuations of technology stocks among traders.