Hong Kong stocks fell sharply on Wednesday, as investors fretted over the ongoing US-China trade war that shows no signs of dying down, while ignoring China’s economic growth in the first quarter. Disappointing data from China’s property sector did not help sentiment either.
The Hang Seng Index dropped 2.5 per cent to 20,922.54 at the noon trading break, its first decline in seven days. The Tech Index slumped 4.5 per cent. On the mainland, the CSI 300 Index and the Shanghai Composite Index both dipped 0.9 per cent.
The declines were led by mainland Chinese tech giants. On-demand delivery service provider Meituan slumped 7.4 per cent to HK$135.90, PC maker Lenovo Group declined 5.4 per cent to HK$7.83 and Alibaba Group Holding slipped 5 per cent to HK$104.40.
Some stocks defied the overall market mood. Hong Kong power utility CLP Holdings and developer Sun Hung Kai Properties both advanced 1 per cent to HK$64.10 and HK$70.10, respectively. HSBC Holdings added 0.8 per cent to HK$79.40.
China’s economy grew 5.4 per cent in the first three months of the year, exceeding Bloomberg’s estimates of 5.2 per cent. The first-quarter gross domestic product (GDP) was supported by front-loading of exports in anticipation of the higher US tariffs, matching the 5.4 per cent growth in the fourth quarter.
Retail sales rose by 5.9 per cent in March, year on year, compared with the 4 per cent growth seen in the first two months. Industrial production surged by 7.7 per cent, well above the expected 5.9 per cent.
