Hong Kong stocks tumbled to the lowest in a month low after a poor inflation report from the mainland reinforced concerns about slowdown risks. Citigroup joined other Wall Street banks in snubbing Chinese stocks, citing weak consumption and corporate earnings outlook.
The Hang Seng Index slumped 2 per cent to 17,094.38 at the local noon trading break, the largest single-day retreat in five weeks. The Tech Index declined 2 per cent, while the Shanghai Composite Index slid 0.9 per cent to an eight-month low.
E-commerce leader Alibaba Group Holding declined 1.7 per cent to HK$78.45, rival JD.com dropped 2.9 per cent to HK$101.30 and Tencent weakened 1.7 per cent to HK$367. Longfor tumbled 4.1 per cent to HK$8.24 and China Resources Land lost 5.1 per cent to HK$19.72, leading declines among mainland Chinese developers.
Consumer prices in China rose 0.6 per cent in August from a year earlier, the government said on Monday, slower than the market consensus of 0.7 per cent. Prices increased 0.5 per cent in July. Factory-gate prices remained in deflationary grip, with the index dropping by more than expected 1.8 per cent.
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What does it mean for the world when Chinese consumers tighten their belts?
What does it mean for the world when Chinese consumers tighten their belts?
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