Hong Kong stocks slide from 3-week high before China trade report with forecasts showing shrinking exports and imports

Hong Kong stocks slide from 3-week high before China trade report with forecasts showing shrinking exports and imports

Hong Kong stocks dropped from a three-week high before a government report that may show China’s exports slumped for a sixth consecutive month in October.

The Hang Seng Index fell 1 per cent to 17,790.94 as of 9.58am local time. The Tech Index lost 0.8 per cent and the Shanghai Composite Index retreated 0.4 per cent.

Sportswear maker Li Ning tumbled 4.6 per cent to HK$26.15, Alibaba Group dropped 0.1 per cent to HK$84.75 and its e-commerce rival JD.com lost 0.7 per cent to HK$106.30.

China’s overseas shipments probably dropped 3.5 per cent from a year earlier, while imports shrank 5 per cent for an eighth month of contraction, according to the consensus forecasts by economists compiled by Bloomberg. The report is due later today.

Stocks surrendered gains after an advance this month on the back of China’s supportive stimulus measures and bets on an imminent end to interest-rate increases in the US. Premier Li Qiang said on Sunday that China would further relax policies and boost imports to seek better ties with major trading partners.

Elsewhere, China Vanke added 0.4 per cent to HK$8.18 after the property developer said that its biggest shareholder Shenzhen Metro Group was considering a variety of tools to support the company, including taking over its urban renewal projects and buying its bonds in the open market.

Mega P&C Advanced Materials, a maker of coatings and paints, jumped 88 per cent to 85 yuan on the first day of trading in Shanghai.

Other major Asian markets dropped. Japan’s Nikkei 225 slipped 0.8 per cent, while South Korea’s Kospi retreated 1.9 per cent and Australia’s S&P/ASX200 lost 0.4 per cent.

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