October 20, 2021

Hong Kong stocks see worst day in 3 weeks on China economy worries

SHANGHAI, Aug 17 (Reuters) – Hong Kong stocks closed lower on Tuesday, marking their biggest fall in three weeks, as sentiment took a hit due to a gloomy economic outlook for China, Beijing’s tighter control of the tech sector, and rising geopolitical tensions.

The Hang Seng index fell 1.7% to 25,745.87, while the China Enterprises Index lost 2.2% to 9,057.88. Both the indexes had their worst day since July 27.

Sharp deceleration in China’s factory output and retail sales in July dented investors’ confidence, dragging cyclical stocks lower.

China’s “July activity data deteriorated across the board, significantly below market expectations,” Nomura said in a note.

“We expect major activity indicators to deteriorate further in August.”

The Hang Seng Tech Index tumbled 3.1%, after China tightened control of its technology sector further, publishing detailed rules on Tuesday…

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