Hong Kong stocks slumped after China’s economy expanded at the slowest pace in two years, sending the market to its worst week since March 2020. An inquiry into an alleged data leak pummelled Alibaba Group Holding and other tech peers. The Hang Seng Index retreated 2.2 per cent to 20,297.72 at the close of Friday trading, its fifth day of decline. It also marked a 6.5 per cent loss for the week. The Tech Index lost 3.2 per cent, while the Shanghai Composite Index declined 1.6 per cent. Alibaba tumbled 6 per cent to HK$102.20, after a 34 per cent rebound over the past seven weeks. Other tech peers also suffered. NetEase declined 4.3 per cent to HK$134.60 and Tencent Holdings weakened 3 per cent to HK$325. Developer Longfor Group sank 6.2 per cent to HK$28, while Country Garden crashed 8.6 per cent to HK$3.31. China’s second-quarter gross domestic product grew 0.4 per cent from a year ago, the slowest pace since the first quarter of 2020. Growth was also far weaker than the 1.2 per cent consensus among economists tracked by Bloomberg. The economy shrank 2.6 per cent from the first quarter. Goldman Sachs cut its 2022 forecast to 3.3 per cent from 4 per cent. “Vulnerabilities still exist in the economy,” said Chaoping Zhu, JP Morgan Asset Management’s global market strategist based in Shanghai. “Service sectors still remained under pressure from uncertainties of Omicron resurgence. Moreover, property sector remained to be the major growth dragger.” China’s uncorrelated stocks are turning into a one-way bet for money managers while policy, regulatory risks stay elevated Fiscal and credit easing may play a more important role in coming months to revive growth, economists at Goldman wrote in a note to clients. The renewed Covid risk in some cities in July could constrain the pace of services sector recovery, and high-frequency data points to a weakness in new home sales and auto sales in early July, it added. China’s central bank refrained from lowering a key policy rate on Friday, holding its one-year medium-term lending facility (MLF) loans unchanged at 2.85 per cent. New home prices also continued to fall in June, the 10th straight monthly decline . Chinese property developers tumbled this week amid more signs of distress in the housing market , including a mortgage boycott in more than 80 cities , which may require “decisive and effective regulatory measures” to stem a systemic risk, Zhu added. Alibaba suffered a rout after The Wall Street Journal reported on Thursday that Shanghai authorities have summoned the e-commerce group to inquire about leaks involving the personal data of nearly 1 billion Chinese citizens on a vast police database. Alibaba is the owner of this newspaper. Separately, Tianqi Lithium rose 0.3 per cent to HK$79.25 after flagging record first-half profits of about 11.6 billion yuan (US$1.7 billion) in an exchange filing on Thursday. The lithium producer started trading in Hong Kong on Wednesday . Its Shenzhen-listed shares lost 1.2 per cent to 124 yuan. BYD rose 4 per cent to HK$294.20 after an upbeat profit alert, according to its exchange filing on Thursday. The Chinese carmaker expects first-half net profit to hit as much as 3.6 billion yuan. Its Shenzhen-listed stock added 4.7 per cent to 338.19 yuan. BYD shares post sharp rally as earnings seen tripling with sizzling sales MicroPort NeuroTech fell 0.2 per cent to HK$24.60 on its first day of trading. Deewin Tianxia was unchanged at HK$1.80, while BoardWare Intelligence Technology soared 13 per cent to HK$1.22. Shenzhen Bluetrum Technology slumped 30 per cent to 64.30 yuan in Shanghai on its trading debut, while Jinglv Environment Science and Technology jumped 29 per cent to 44.49 yuan in Shenzhen. Major Asian markets were mixed, with Japanese and South Korean stocks adding 0.4 to 0.5 per cent, while Australian equities lost 0.7 per cent.