Hong Kong stocks fell to their lowest level since the end of the global financial crisis as investors reacted to the city’s economic recovery plan and the 20th National Congress of the Communist Party of China in Beijing.
The benchmark Hang Seng Index fell 3%, reaching its lowest level since May 2009, while the China Enterprises Index of large mainland companies listed on Hang Seng fell 3.3%.
After the Nasdaq Golden Dragon Index, which tracks Chinese tech groups traded in the US, fell more than 7% on Wednesday, the Hang Seng Tech index also fell 4.8%.
Hong KongStocks have underperformed US and European markets this year as geopolitical tensions rise between Beijing and Washington. Stocks are also Regulatory attacks on the tech industry In China, the real estate crisis is weighing on economic growth.
Thursday’s drop comes after Hong Kong’s leader John LeeIn his presidential inaugural address Wednesday, he said Announces measures to attract international business and talent However, it did not come close to abolishing inbound travel and social distancing restrictions related to the Covid-19 pandemic.
Investors are also paying attention Congress of the Communist Party of ChinaSome analysts had hoped it might include announcing stimulus packages or easing President Xi Jinping’s devastating coronavirus measures.
Dicky Wong, head of research at Hong Kong’s Kingston Securities, said many traders had been disappointed Lee had expected to announce a substantial bailout for the city’s troubled property market.
“There were basically no new substantive measures [on real estate]Wong added that Beijing’s decision to postpone the release of China’s third-quarter economic growth report this week exacerbated negative market sentiment.
“This creates uncertainty,” he said. “Regardless of the economy’s performance in the third quarter, investors still want a clear picture.”
Brokers were skeptical of Lee’s actions, including proposed changes to listing requirements, according to Dealogic data. .
https://www.ft.com/content/a4054823-75d3-4eaf-a584-bc38c9bbc8da Hong Kong stocks hit 13-year low as China’s growth slows