Hong Kong stocks slip as China’s gloomy economic outlook spooks investors
- Barclays cut their China GDP forecast for 2024 to 4.8 per cent from 5 per cent, Goldman Sachs reduced it to 4.9 per cent and JPMorgan lowered theirs to 4.7 per cent
Hong Kong stocks fell on Tuesday as China’s economic gloom punctured investor sentiment, with major investment banks downgrading their economic projections for the world’s second-largest economy.
The Hang Seng Index slipped 1.6 per cent to 17,727.98 at closing of trade. The Hang Seng Tech Index declined 1.4 per cent, while the Shanghai Composite Index gained 0.6 per cent.
Logistics company Orient Overseas International fell 4.6 per cent to HK$109.10, travel giant Trip.com slid 3.8 per cent to HK$373.80 while sportswear brands Li Ning retreated 3.2 per cent to HK$14.92.
Tech stocks mostly declined, as Baidu fell 3 per cent to HK$91.15, Alibaba dropped 1.5 per cent to HK$75.50 and Tencent retreated 3.1 per cent to HK$378.
Economic data released on Monday showed growth momentum had weakened, leading to China GDP forecast downgrades by several major banks. Barclays cut their China GDP forecast to 4.8 per cent from 5 per cent, Goldman Sachs reduced theirs to 4.9 per cent from 5 per cent and JPMorgan downgraded it to 4.7 per cent from 5.2 per cent.
