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Hong Kong stocks slump as funds sell on yuan outlook while Evergrande tumbles

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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

Hong Kong stocks tumbled as foreign investors continued to stay away amid concerns the yuan will weaken on widening interest-rate differentials. China Evergrande Group slid after authorities detained some executives from its wealth management unit.

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.

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