Hong Kong’s stock benchmark was on track to enter a technical bear market as worrying signs mount in all corners of the Chinese economy.
The Hang Seng Index fell 1.7% early Thursday, extending losses from a January high to about 21%. The Hang Seng China Enterprises Index also slipped 1.7%.
Pessimism is deepening as investors see no easy fix to the economy’s ailments. The property market is mired in a slump, a new crisis is brewing in the shadow banking sector, while economic data continue to disappoint. Steps to boost the market including an interest-rate cut and reportedly asking investment funds to avoid net selling equities have done little to revive sentiment as traders call for more forceful measures.
READ: China Leaders Vow to Lift Consumption Without Detailing How
Worse still, the picture emerging from property agents and private data providers suggest the slump in the real estate market may be far more dire than official reports show. In the latest effort to boost confidence, China’s top leaders pledged to expand domestic consumption and support the private sector in a Wednesday statement, but again lacked details on any new stimulus measures.
The Hang Seng Index and HSCEI gauge are among the year’s worst performers in 92 major gauges tracked by Bloomberg, having lost at least 8% at least each.
--With assistance from Ishika Mookerjee.
