Hong Kong stocks hit 3-week low as China data fuels slowdown risks, Citigroup cuts target

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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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Screens showing stock indices and prices outside the Exchange Square in Central. Photo: Sun Yeung

Jiaxing Li

Published: 10:43am, 9 Sep 2024Updated: 4:47pm, 9 Sep 2024

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.

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.

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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“The current growth momentum remains weak,” Kevin Liu, managing director and strategist at CICC Research, said in a note. Market volatility is set to persist in the short term amid uncertainties in China’s policies, he added.