Hong Kong stocks log second weekly loss, worst start to a year since 2016, as China deflation risk mounts
- Consumer prices in mainland China fell 0.3 per cent in December, a third straight month of deflation, a government report shows
- Hang Seng Index has declined 4.8 per cent this year, the worst start to a year since a 10 per cent slide in the opening two weeks of 2016
The Hang Seng Index fell 0.4 per cent to 16,244.58 on Friday, piling up the losses this week to 1.8 per cent. The Tech Index lost 0.9 per cent while the Shanghai Composite Index weakened 0.2 per cent to the lowest level since May 2020.
Alibaba Group dropped 0.4 per cent to HK$70.55 and peer JD.com tumbled 1.6 per cent to HK$98.30, while Meituan weakened 0.5 per cent to HK$75.25. EV maker BYD slipped 0.7 per cent to HK$211, HSBC tumbled 2.4 per cent to HK$61.50 and Bank of China (Hong Kong) slid 3.2 per cent to HK$19.22.
The Hang Seng Index has retreated 4.8 per cent since the new year, marking the worst start to a year since a 10 per cent drop in the first two weeks of trading in 2016.
Stocks gained in earlier trading on speculation the People’s Bank of China will cut the one-year medium-term lending facility to 2.4 per cent from 2.5 per cent from as early as Monday, according to consensus among analysts tracked by Bloomberg. The central bank is also expected to cut banks’ reserve ratio to inject more liquidity in the system, the forecasts showed.