Hong Kong stocks drop as new signs of China recovery weakness challenge fund managers’ view that sell-off overdone
- Some fund managers remain bullish on cheap Chinese stocks after months of sell-off
- Concerns over China’s economic recovery linger as credit data in October fell short of market expectations
The Hang Seng Index lost 0.2 per cent to 17,396.86 on Tuesday, after gaining as much as 0.8 per cent earlier. The Tech Index dropped 0.7 per cent, while the Shanghai Composite Index gained 0.3 per cent.
Tencent dropped 0.9 per cent to HK$307, Alibaba Group lost 2 per cent to HK$79 and rival e-commerce platform JD.com declined 1.2 per cent to HK$99.55. Food delivery platform Meituan lost 3.1 per cent to HK$108.10, and chip maker SMIC weakened 0.7 per cent to HK$22.05.
Limiting losses, electric vehicle maker BYD added 0.5 per cent to HK$243.40. HSBC climbed 1.1 per cent to HK$58.40, leading gains among local lenders. A US government report later today may show inflation cooled last month, underpinning bets on another Federal Reserve rate pause this year.