Hong Kong stocks dropped for a third day, deepening losses at a 13-month low as China’s slowdown weighed on earnings outlook. WuXi Biologics slumped further after some analysts cut their recommendation. Moody’s lowered China’s rating outlook to negative.
The Hang Seng Index tumbled 1.9 per cent to 16,327.86 on Tuesday, the lowest level since November 10 last year. The Tech Index dropped 2.1 per cent while the Shanghai Composite Index retreated 1.7 per cent to close below the 3,000-point mark for the first time in five weeks.
WuXi Biologics sank 8.5 per cent to HK$30.35, adding to a 24 per cent plunge on Monday that triggered a trading halt and erased HK$44 billion (US$5.62 billion) in market capitalisation. Analysts at Nomura, Daiwa, BoCom, CLSA and Citigroup cut their earnings forecasts or downgraded their recommendations to reflect the souring prospects.
PC maker Lenovo Group tumbled 11 per cent to HK$8.87 after chairman Yang…
