Hong Kong stocks hit 5-week low as sell-off in ICBC, Chinese banks deepens while Alibaba jumps on Ant Group speculation
- A Hang Seng Index tracking bank stocks lost 5.8 per cent this week, the worst pullback since October, after Goldman’s recent downgrades
- Foreign investors continued to sell down onshore equity holdings as Treasury Secretary Yellen kicked off her five-day China trip
The Hang Seng Index dropped 0.9 per cent to 18,365.70 at the close of Friday trading, the lowest level since June 1. The tech index slipped 1.2 per cent while the Shanghai Composite Index declined 0.3 per cent.
NetEase slid 3.2 per cent to HK$147.60, JD.com fell 0.6 per cent to HK$134.70 and Meituan slipped 1.2 per cent to HK$119.10. Sportswear maker Li Ning slid 4.3 per cent to HK$39, peer Anta slipped 2.6 per cent to HK$77.30 and online travel agency Trip.com tumbled 2.7 per cent to HK$262.40.
Industrial and Commercial Bank of China fell 1.4 per cent to HK$3.61, while Agricultural Bank of China dropped 2.4 per cent to HK$2.85 and Construction Bank slipped 1.4 per cent to HK$4.37. HSBC dropped 0.7 per cent to HK$60.60.
The city’s benchmark index lost 2.9 per cent this week, the worst start to the third quarter since a 3 per cent loss in the opening week of July 2021. Fresh data pointed to further cracks in China’s economic recovery, while optimism about policy stimulus waned and the yuan depreciated.
Foreign investors sold 9.6 billion yuan (US$1.3 billion) worth of onshore stocks this week, Stock Connect data showed, in addition to US$360 million outflows last quarter.
