The Hang Seng Index slipped 2.5 per cent to 17,295.89 at the closing of Thursday trading, the biggest drop in about three weeks. The Tech Index tumbled 1.9 per cent, while the Shanghai Composite Index fell 1.7 per cent to the lowest level this year.
Alibaba Group dropped 2.8 per cent to HK$79.15, and rival e-commerce platform operator JD.com slumped 5.4 per cent to HK$97.20. Tencent lost 2.9 per cent to HK$291.20, and Baidu declined 5.3 per cent to HK$107.70 while Meituan retreated 2.9 per cent to HK$110.40.
Property stocks weakened. A gauge tracking mainland Chinese developers listed in Hong Kong slid 2.5 per cent to approach a one-year low. Longfor lost 2.7 per cent to HK$11.60 while China Resources Land retreated 1.8 per cent to HK$29.40.
Red flags for China’s earnings season as Alibaba, JD.com price targets slashed
Red flags for China’s earnings season as Alibaba, JD.com price targets slashed
Meanwhile, average home prices in 70 medium and large-sized Chinese cities fell 1.4 per cent from a month earlier, easing from a 2.8 per cent drop in August, according to a seasonally-adjusted data compiled by Goldman Sachs, based on numbers released by the National Bureau of Statistics.
“[The readings] show continued weakness in almost every aspect of the property market,” Nomura analyst Jizhou Dong said in a note to clients on Thursday. “What is more concerning to us is the seemingly limited willingness of the central and local governments to introduce more policies to stabilise sales and investments.”
Chinese stocks back in favour as more funds predict turnaround
Chinese stocks back in favour as more funds predict turnaround
A majority of fund managers in Asia believed a structural de-rating process was under way for Chinese stocks, as their China allocation dropped to the most underweight position in a year, according to a survey published by Bank of America.
The chronic weakness in China’s economic activity and a sustained lack of concerted easing has caused fatigue and frustration to take over the market, the bank’s strategists including Ritesh Samadhiya said in a note to clients.
Elsewhere, electric-car maker BYD dropped 3.7 per cent to HK$248, while bourse operator Hong Kong Exchanges and Clearing fell 2.3 per cent to HK$282.60 before their third-quarter earnings reports in the coming days.
Key Asian markets declined. South Korea’s Kospi and Japan’s Nikkei 225 both slid 1.9 per cent, while Australia’s S&P/ASX 200 lost 1.4 per cent.