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Hong Kong stock market
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Hong Kong stocks extend drop to 3-week low on weak China spending, manufacturing signals while stimulus bets wane

  • A government report later this week may show Chinese manufacturing contracted again in June amid shrinking demand from overseas
  • Local stocks slid as global hedge funds continue to withdraw their money in favour of assets in India and Japan, according to Goldman Sachs

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A screen displaying stock figures in Shanghai on June 21, Photo: Bloomberg
Jiaxing Li
Hong Kong stocks approached a four-week low as weak consumer spending and manufacturing added to signs China’s economic recovery is faltering. Boardroom changes dented Meituan.
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The Hang Seng Index slipped 0.5 per cent to 18,794.13 on Monday, the lowest level since June 2. The benchmark slumped 5.8 per cent last week in the biggest sell-off since mid-March. The Tech index lost 0.2 per cent, while the Shanghai Composite Index tumbled 1.5 per cent.

Tencent declined 1.2 per cent to HK$332.80 and Alibaba Group weakened 1 per cent to HK$83.25, while chip maker SMIC lost 0.9 per cent to HK$19.92. Travel agency Trip.com dropped 2.8 per cent to HK$267.80.

Macau casino operator Sands China declined 1.8 per cent to HK$27.50. Developer Longfor slipped 3.8 per cent to HK$17.88 while peer Country Garden lost 2.5 per cent to HK$1.55.

Meituan lost 0.6 per cent to HK$124 after co-founder Wang Huiwen resigned as non-executive director, according to an exchange filing. E-commerce giant JD.com tumbled 2.9 per cent to HK$136.10 after local mainland media said the group set up a new business unit to explore offline expansion amid an online price war. Yui Yu stepped down as CEO and executive director of its logistics arm, the company said.
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“The main problem is that the growth momentum is still weak and confidence remains low,” Guosheng Securities analyst Xiong Yuan said in a note on Sunday. Recent cuts policy rates is just a start, and more stimulus could be on the way, he wrote.

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