Hong Kong stocks trade close to 2-month low, New World drops on Hang Seng removal

The Hang Seng Index dropped 0.3 per cent to 19,166.23 as of 11.09am local time after retreating 1 per cent last week. The benchmark is set to close at its lowest point since September 25. The Hang Seng Tech Index lost 0.7 per cent.

Turnover on the city’s stock market was about a fifth lower than the 30-day average, according to Bloomberg data.

Mainland benchmarks also inched lower: the CSI 300 Index fell 0.3 per cent and the Shanghai Composite Index slipped 0.1 per cent.

The Hong Kong market’s recent rally has run out of steam after China’s fiscal stimulus disappointed investors who are also worried about higher tariffs from the US. Readouts from recent earnings reports show listed companies are still grappling with weak domestic demand in China as well as lingering property woes. Through Friday, the Hang Seng Index was down 17 per cent from this year’s high set in October.