The HSCEI fell by as much as 1 per cent in intraday trading, taking its decline from this year’s peak on January 27 to 20.4 per cent. Sell-offs in China assets have deepened after economic data trailed estimates in April.
Veteran analyst Chen Li has become upbeat about Hong Kong stocks, as current prices are yet to reflect an improving outlook for earnings growth with investors too preoccupied over geopolitical risks.
The Hang Seng Index fell for a fourth day, heading for the longest streak of declines in two months, after slowing credit growth in China and weak US job figures added to evidence that economic activity is moderating.
Risk appetite wanes amid concern that China’s cybersecurity probe into Micron Technology will escalate tensions between Beijing and Washington, coupled with a slew of earnings disappointments.