Hong Kong stocks sank by the most since July as China Evergrande Group’s free-fall stoked concerns about credit risks among indebted developers and Chinese officials failed to calm investors about tech sector clampdown.
The Hang Seng Index slumped 3.5 per cent to 24,053.98 as of 10.35am local time, set for the worst day since a 4.2 per cent crash on July 27. All 60 index members declined. The local market weakened as a public holiday in China deprived it of the buying support from mainland funds.
The Stock Connect’s southbound trading link with Hong Kong will be shut over the next three days, according to exchange data.
Tencent slipped 2.3 per cent to HK$451.20, carmaker BYD lost 4.8 per cent to HK$245 and Meituan retreated 2.7 per cent to HK$234.40. The Hang Seng Property sub-index tumbled 6 per cent to the lowest level in more than seven years.
China Evergrande sank 14 per cent to HK$2.18, taking its six-day losses to 41 per cent. The developer on the weekend offered its properties at discounted prices to repay creditors, after hiring outside advisers to tackle its debt burden.
China’s top regulators defended their market-roiling crackdown on various industries in a meeting with Wall Street executives, while reassuring them the stricter rules are not aimed at stifling technology companies or the private sector, according to a Bloomberg report.
Internet Explorer Channel Network