Chinese stocks listed in Hong Kong slumped as trading resumed after a holiday, hurt by a broad risk-off mood across the region and continued concern about the nation’s economic outlook.
The Hang Seng China Enterprises Index slid 3.2%, the most in nearly three months. Support from mainland traders was absent as markets there remain closed for the Golden Week holiday, while bets for higher US interest rates boosted the dollar and sapped sentiment across the region.
The poor start to a new quarter reflects the entrenched pessimism that has plagued Chinese equities for much of this year. Tuesday’s broad declines in Hong Kong came despite positive data from China’s holiday weekend, which showed a doubling in tourism revenue from a year earlier. A report from Morgan Stanley showed global funds further trimmed their Chinese stock holdings in September, lowering their average position on the market to the lowest level since 2020.
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