The Hang Seng Index fell 0.8 per cent to 17,893.62 as of 10.30am local time, and is on track for the lowest close since April 30. The Hang Seng Tech Index also dropped 0.9 per cent and the Shanghai Composite Index retreated 0.8 per cent.
Hotpot chain restaurant operator Haidilao International Holding slumped 5.7 per cent to HK$14.26 and Alibaba Health lost 3.6 per cent to HK$3.38. Meituan fell 2.2 per cent to HK$113.60 and Alibaba Group Holding shed 0.9 per cent to HK$71.40.
“There’s no catalyst now and valuations are fair,” said Wang Xueheng, an analyst at Guosen Securities. “We recommend investors not take any action for now. If the index falls around the 17,200 level, investors can consider some opportunity of bottom-fishing.”
The Hang Seng Index is now down almost 9 per cent from this year’s high set last month, as investors took profits as fundamentals lagged. The May economic data set showed China’s economic recovery remains uneven, while a high-profile financial gathering attended by top officials from the central bank and the stock-market regulator failed to impress.
Other major Asian markets were mostly weak. South Korea’s Kospi retreated 0.7 per cent and Australia’s S&P/ASX 200 lost 0.6 per cent, while Japan’s Nikkei 225 was little changed.