Hong Kong index slumps to three-week low as China data misses estimates, Macau casinos tumble
- Macau casino stocks Sands China and Galaxy Entertainment lead Hang Seng Index lower as the gambling hub tightens scrutiny of the industry
- China’s August data on industrial production, retail sales and investments all trail estimates
China’s Shanghai Composite Index slipped 0.2 per cent. Combined daily turnover on the Shanghai and Shenzhen exchanges surpassed 1 trillion yuan (US$155.3 billion) for 41 straight days, closing in on the 43-day record set in 2015.
China’s industrial production, retail sales and fixed-asset investment data for August all missed analysts’ estimates, underscoring the risk from the sporadic outbreaks of the Delta virus strain that forced parts of the country to reimpose lockdown measures last month. Retail sales grew 2.5 per cent last month, the weakest pace in a year, as restrictions on travel and big gatherings took their toll on domestic consumption.
“China’s data dump contained some unpleasant surprises as each release missed expectation,” said Jeffrey Halley, an analyst at Oanda. “With regards to the retail sales data though, one can’t divorce slump in consumer confidence from the ongoing multi-sector government crackdowns, where job losses are an inevitability. With the sectorial clampdowns and withering domestic consumer confidence, the downward repricing of China equities could be far from over.”