Hong Kong stocks suffer worst quarter in 11 years as investors dump Alibaba, Tencent, HSBC on global recession fears

The Hang Seng Index slumped 21 per cent this quarter for the biggest decline since the same three months in 2011

Top losers in September included Alibaba and Tencent as they slumped at least 17 per cent; HSBC sank 15 per cent and Country Garden crashed 22 per cent

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Investors monitor stock price movements at a securities company in Shanghai on September 24. Photo: AFP

Published: 10:20am, 30 Sep 2022Updated: 4:48pm, 30 Sep 2022

Hong Kong stocks completed the worst quarter in 11 years after investors dumped riskier assets worldwide amid recession worries. A surprise gain in Chinese manufacturing helped trim losses before a week-long holiday in mainland markets.

The Hang Seng Index closed at 17,222.83 on Friday, for a 21 per cent loss since June 30. That is the most since a 21.5 per cent sell-off in the same quarter in 2011. This month’s 14 per cent plunge is also the worst in 11 years. The Hang Seng Tech Index slid 0.9 per cent, while the Shanghai Composite Index lost 0.6 per cent.

An early bounce on Friday, aided by better than expected Chinese manufacturing data and measures to support the housing industry, lost some steam as worries about further interest-rate increases sapped appetite for risk taking.

Chinese tech stocks, which drive the local market, took a major beating this quarter. Alibaba Group tumbled 30 per cent and Tencent lost 25 per cent while Meituan slumped 15 per cent. Developer Country Garden sank 22 per cent this month, even after a 9 per cent rally on Friday, while HSBC tumbled 15 per cent.

Trading thinned before the National Day break in mainland China next week. Volume in Hong Kong was about a fifth below the 30-day average, while those on the Shanghai bourse was almost 10 per cent poorer, according to Bloomberg data. Trading in Hong Kong will separately pause on October 4 for a local holiday.