Hong Kong stocks slump to 3-month low as China growth jitters dampen sentiment

The Hang Seng Index dropped 1.8 per cent to 25,171.36 as of 11.20am local time, heading for a level not seen since September 4. The decline was broad-based, with all but eight stocks on the 89-member benchmark falling. The Hang Seng Tech Index slid 2.3 per cent.

On the mainland, the CSI 300 Index slipped 1.3 per cent and the Shanghai Composite Index retreated 1.1 per cent.

Alibaba Group Holding slumped 3.6 per cent to HK$143.20 and Tencent Holdings lost 1.6 per cent to HK$593.50. Aluminium maker China Hongqiao Group sank 6.1 per cent to HK$29.98 and gold producer Zijin Mining Group shed 4.3 per cent to HK$33.02.

Sentiment took a hit as investors feared China’s economic slowdown would deepen after key economic data showed a deceleration across the board in November. Retail growth weakened to the slowest pace since the Covid-19 pandemic, while fixed-asset investment continued to contract and a decline in home prices showed no signs of abating.

Investors also stayed on the sidelines ahead of the US labour market for November due later on Tuesday, which would include a reading for October that was delayed by the longest-ever government shutdown. A soft reading would increase the chances of monetary easing, which would support stocks’ stretched valuations.