Hong Kong stocks hit three-week low as buying support from mainland funds wanes on slowdown, geopolitical concerns
- Hang Seng Index declined after a holiday on Monday, with property developers and banks leading losses
- Xtep surged by a record 21 per cent to an all-time high after a strategic investment deal with Chinese private equity firm Hillhouse Capital
The Hang Seng Index retreated 0.7 per cent to 28,638.53 on Tuesday, following a 0.3 per cent setback last week. The Shanghai Composite Index retreated 0.9 per cent to 3,556.56.
Property developers were among the biggest losers amid concerns China is tightening its scrutiny on lending to the sector to contain financial risks. Country Garden fell 2.7 per cent, China Evergrande and China Vanke and China Overseas Land tumbled more than 2 per cent.
Banks also declined. Citic dropped 2.6 per cent. BOC Hong Kong retreated and Bank of China retreated 1.8 per cent, Bank of Communications shed 1.5 per cent.
“Investors are waiting for better visibility [on some factors], such as [antitrust] regulations on tech companies when there’s little catalyst,” said Chi-man Wong, head of research at China Galaxy International Securities in Hong Kong. “Trading volume is low and people do not have a strong view on market direction.”