Hong Kong, mainland stocks hit three-week low as traders focus on inflation risks before Fed statement while China data disappoints
- Hang Seng Index retreated 0.7 per cent on Wednesday with carmakers and tech companies among the biggest losers
- Dental braces maker Angelalign Technology soared in its market debut after its HK$2.91 billion offering
The Hang Seng Index retreated 0.7 per cent to 28,436.84 on Wednesday, extending a slide to the lowest level since May 24. The Shanghai Composite Index slumped for a third day, slipping 1.1 per cent to 3,518.33. Stocks on tech-heavy ChiNext board tumbled 4.2 per cent.
BYD crashed 7.8 per cent while Geely Auto lost 3.9 per cent and Great Wall Motors plunged 8.7 per cent. Developers also suffered losses with Hang Lung Properties and New World Development tumbled 1.7 per cent and 1.6 per cent respectively.
The Hang Seng Tech Index fell 1.6 per cent, with Meituan, Alibaba and Tencent Holdings pacing decliners with 0.3 per cent to 4.8 per cent setback.
US equities slipped from their record highs overnight while the MSCI World Index has slipped from its June 14 all-time high after a 12 per cent rally this year. Government reports showed faster than expected gain in US producer price index in May, while retail sales tumbled by more than predicted 1.3 per cent.
Both came before the Federal Reserve wraps up its policy meeting this week, with markets bracing for clues on possible cutback in bond purchases.
In the mainland, auto stocks and blue chips which were favoured by funds shed. Chongqing Changan Automobile and Great Wall Motor plummeted by the daily cap of 10 per cent.
Other new listings in mainland markets also surged. Shandong Kehui Power Automation advanced 157 per cent, Dalian Demaishi Precision Technology soared 472 per cent, while AVE Science & Technology gained 160 per cent.