About half of the stocks in Hong Kong’s benchmark index are now oversold as investor sentiment deteriorates amid China’s dismal economic data, deflation fears, and a property market slump that’s now threatening a crisis in the shadow lending sector.
Among the 80-member Hang Seng Index, 42 stocks saw their 14-day relative strength index fall below 30 — a level that indicates shares are oversold. The ratio was the highest since March 2022. The gauge tumbled into a bear market on Friday and has lost about 12% this month, set for its its biggest monthly decline since October.
--With assistance from Ernest Tsang.
