Hong Kong stocks tumble as yuan outlook stokes fund outflows while Evergrande, Country Garden slide on more bad news
Foreign funds sold US$2.1 billion of Chinese stocks last week, while foreign exchange outflows reached US$42 billion in August, the most since 2016Evergrande slumped as much as 25 per cent after authorities detained some executives from its wealth management unitHong Kong stock marketJiaxing LiPublished: 10:43am, 18 Sep, 2023Why you can trust SCMP
The Hang Seng Index fell 1.4 per cent to 17,930.55 at the close of Monday trading to a three-week low. The Tech Index declined 2.2 per cent while the Shanghai Composite Index gained 0.3 per cent.
Alibaba Group weakened 2.4 per cent to HK$84.20, e-commerce rival JD.com dropped 2.9 per cent to HK$121, while food delivery platform operator Meituan slipped 1.9 per cent to HK$122. Tencent declined 1.6 per cent to HK$312.20.
Hong Kong developers Sun Hung Kai Properties, New World Development and Henderson Land each slipped by almost 2 per cent on concerns property prices will weaken as seven banks in the city prepare to raise mortgage rates. HSBC lost 0.2 per cent to HK$60.75 and Bank of China (HK) slipped 0.4 per cent toi HK$2.72.
The Hang Seng Index has retreated about 2 per cent this month as investors ignored recovery signs and rued Beijing’s go-slow approach to revitalise the economy. Foreign funds sold US$2.1 billion of Chinese stocks last week, taking the six-week outflows to a record US$15 billion, Goldman Sachs said.