The Hang Seng Index fell 2.1% to 16,185.57 as of 2:55 p.m. local time. The benchmark fell 3% last week, its lowest since it fell 4.6% in the first week of trading 19 years ago. The tech index fell 3.3%, its lowest since late November 2022, and the Shanghai Composite Index fell 1.3%.
Alibaba Group fell 2.3% to HK$70, while e-commerce peer JD.com fell 4.3% to HK$100.80. Tencent fell 1.9% to HK$286.60, while online gaming peer NetEase fell 3.9% to HK$140.40. EV maker BYD fell 2.4% to HK$203.20, rival Li Auto fell 2.6% to HK$131.40 and Meituan fell 4.8% to HK$74.
The Chinese economy continued to struggle until the end of last year due to continued deflation. According to forecasts before the official report on January 12, consumer prices probably fell 0.4% in December from a year earlier, after falling 0.5% in November. Other economic reports on the same day are likely to show slower growth in both imports and exports. According to Goldman Sachs.
“The strong pullback in the first week of the year has worsened sentiment,” Kevin Liu, a strategist at CICC Research, said in a note on Sunday. “Further policy support remains key to reversing the current situation in the Hong Kong stock market. Even if the Federal Reserve cuts interest rates, the recovery is likely to be short-lived.”
Singapore hedge fund sees 'significant upside' in Chinese stocks after four years of slump
Singapore hedge fund sees 'significant upside' in Chinese stocks after four years of slump
Foreign funds were net sellers of mainland stocks by 5.5 billion yuan (US$770 million) last week, according to Stock Connect data, adding to five consecutive months of record declines.
Elsewhere, China Evergrande New Energy Vehicle fell 6% to HK$0.39. The automaker announced in a stock exchange filing that executive director Liu Yongzhou has been detained by mainland authorities on unspecified charges.
Major stock markets in Asia were mixed. South Korea's Kospi fell 0.4%, Australia's S&P/ASX 200 fell 0.5%, while Japan's Nikkei Stock Average rose 0.3%.
