Hong Kong stocks suffer biggest weekly loss in eight months

Hong Kong stocks suffered their biggest weekly loss in eight months after sliding for a fourth day on Friday.

The market was hit by reports about US technology companies’ systems being infiltrated by tiny chips implanted by Chinese intelligence agents, surging US treasury yields and reductions in target prices.

The Hang Seng Index fell by as much as 1 per cent, or 250.41 points, to touch 26,373.46 on Friday morning, before recovering some losses and closing at 26,572.57, down 0.19 per cent. The losses added up to 4.38 per cent or 1,215.95 points for the week, the most since the week ending February 9, when the market lost 9.49 per cent.

The Hang Seng China Enterprise Index fell 0.16 per cent per cent, or 17.32 points, to close at 10,530.32 on Friday. On a weekly basis, it was down 4.43 per cent, or 487 points, also its biggest drop since the week of February 9, when it lost 12.09 per cent.

Mainland stock markets are closed and will reopen next week. Brokers said the mainland markets’ closure has brought selling pressure to Hong Kong stocks this week.

Dickie Wong, executive director of research at Kingston Financial Group, said the lack of southbound capital flowing through the “stock connect” link during the National Day holidays had contributed to the decline this week.