Hong Kong stocks retreat after downbeat China data, Trump rally shooting

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China’s economy grew 4.7 per cent year-on-year in April-June, below market estimates of 5.1 per cent and June retail sales growth of 2 per cent year-on-year also lagged

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A portrait of former Chinese leader Mao Zedong at Tiananmen Square in Beijing, China, on Saturday, July 6, 2024. Traders will closely monitor China’s third plenum of the 20th Party Congress which kicks off today and which is expected to announce economic reforms. Photo: Bloomberg

Mia Castagnonein Shanghai

Published: 10:57am, 15 Jul 2024Updated: 4:52pm, 15 Jul 2024

Hong Kong stocks fell during trade on Monday as risk appetite soured after weaker than expected Chinese economic data added to investor woes after the mood was already jittery following the assassination attempt on former US President Donald Trump at a political rally. The retreat comes at a time when investors are reining in expectations from China’s third plenum which kicked off today.

The Hang Seng Index slipped 1.6 per cent to 18,009.95 at the close of trade on Monday. The Hang Seng Tech Index declined 2.9 per cent, while the Shanghai Composite Index added 0.1 per cent.

A slew of Chinese economic data released on Monday showed the world’s second largest economy was still struggling to boost domestic demand. The second quarter GDP figures, which showed growth of 4.7 per cent year-on-year in April-June, lagged market expectations of 5.1 per cent. It was a slowdown from 5.3 per cent in the previous three months and the weakest growth since the third quarter of 2023.

Retail sales in June grew 2 per cent year on year, which was also well below market expectations of 3.4 per cent.

“The growth figures for China is a dent for risk appetite,” said Tim Waterer, chief market analyst at KCM Trade. “Retail Sales reflected the still patchy domestic demand picture in China. Industrial Production was one of the few bright spots in the data today. All up – China’s economy is still struggling for traction.”

Baidu led losses falling 5.6 per cent to HK$93.95, Alibaba fell 2.2 per cent to HK$76.65 and Tencent dropped 1.7 per cent to HK$390.20. JD.com declined 4.7 per cent to HK106.70, sportswear brand Li Ning fell 4.9 per cent to HK$15.42, while Chow Tai Fook retreated 4.5 per cent to HK$8.25.