HONG KONG, Mar 20 (Reuters): A Hong Kong stock market index tracking mainland enterprises has fallen more than 20 per cent since the start of December, far outpacing a drop in the broader benchmark and signaling that investors are worried about the outlook for the Chinese economy.
The index's drop comes at a time when recent disappointing economic data has fueled concerns China will find it difficult to achieve its 2014 growth target of 7.5 per cent.
On Thursday, Hong Kong-listed stocks were hurt by the signal overnight from the US Federal Reserve that it was ready to raise interest rates sooner than expected. In recent years, risky assets such as equities have benefited from the Fed's heavy asset-buying -- now getting steadily reduced -- and low global interest rates.
The China Enterprises Index of the top Chinese listings in Hong Kong fell 1.7 per cent on Thursday and is off 20.3 per cent from a December 2 high. The index, the easiest way to bet on mainland enterprises, has suffered the brunt of a selloff in recent days.
The broader Hang Seng Index tumbled 1.8 per cent on Thursday to 21,182.16, its lowest close since July 10. It was hurt by the Fed news and disappointing 2013 earnings from China Mobile, the world's largest carrier by subscribers.
Since December 2, the Hong Kong benchmark has fallen 11.9 per cent, about half of the HSCE's drop.
Ben Kwong, chief operating officer of stockbroker KGI Asia, said weakness for China-related stocks "may drag on for a period of time until there are signs that the government will do something such as introducing a stimulus package or maybe the monetary policy will change."
HK mainland stock index declines 20pc since Dec
FE Team | Published: March 21, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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