Hong Kong stocks slide from 3-week high on deeper than expected slump in China’s exports

China’s exports shrank 6.4 per cent in October, the customs office said, versus forecast for a 3.5 per cent drop by economists

Losses in Li Ning, Alibaba Group and JD.com pulled the Hang Seng Index down from a three-week high

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People walking outside the Exchange Square in Central, Hong Kong in June 2023. Photo: Xiaomei Chen

Published: 10:32am, 7 Nov 2023Updated: 5:08pm, 7 Nov 2023

Hong Kong stocks dropped from a three-week high as a government report showed China’s exports slumped for a sixth consecutive month in October, reigniting concerns about the strength of the nation’s economic recovery.

The Hang Seng Index fell 1.7 per cent to 17,670.16 on Tuesday. The Tech Index lost 1 per cent and the Shanghai Composite Index retreated less than 0.1 per cent.

Alibaba Group dropped 2 per cent to HK$83.15, its e-commerce rival JD.com lost 2.2 per cent to HK$104.60 and Tencent retreated 1.3 per cent to HK$308.60. Sportswear maker Li Ning tumbled 4.6 per cent to HK$26.15 and Wharf REIC lost 4.9 per cent to HK$27.10.

China’s overseas shipments dropped 6.4 per cent in October from a year earlier, the customs office said on Tuesday, versus consensus forecast for a 3.5 per cent decline. Imports rose 3 per cent in October, surprising projections for a 5 per cent fall.

“Policies still need to be ramped up to boost growth in the fourth quarter and next year,” said Yan Zhaojun, an analyst at Zhongtai Securities. Potential slowdown in the US economy and the stickiness of inflation, which may keep the interest rate at a high level for longer, could restrain market advance in Hong Kong, Yan added.