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Hong Kong stocks hit 3-week low as China data fuels slowdown risks, Citigroup cuts target
Citigroup lowered its Hang Seng Index target by 3 per cent in a note on Monday, citing weak consumption and corporate earnings outlook
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Hong Kong stocks fell to the lowest in three weeks after a poor inflation report from the mainland reinforced concerns about slowdown risks. Citigroup joined other Wall Street banks in snubbing Chinese stocks, citing weak consumption and corporate earnings outlook.
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The Hang Seng Index retreated 1.4 per cent to 17,196.96 on Monday, a level last seen on August 15. The Tech Index declined 1.5 per cent, while the Shanghai Composite Index slipped 1.1 per cent to an eight-month low.
E-commerce leader Alibaba Group Holding declined 1.9 per cent to HK$78.30, rival JD.com slumped 3 per cent to HK$101.20 and Tencent weakened 0.6 per cent to HK$371.20. Longfor tumbled 3.3 per cent to HK$8.31 and China Resources Land lost 3.9 per cent to HK$19.98, leading declines among mainland Chinese developers.
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Consumer prices in China rose 0.6 per cent in August from a year earlier, the government said on Monday, slower than the market consensus of 0.7 per cent. Prices increased 0.5 per cent in July. Factory-gate prices remained in deflationary grip, with the index dropping by more than expected 1.8 per cent.
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What does it mean for the world when Chinese consumers tighten their belts?
What does it mean for the world when Chinese consumers tighten their belts?
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