Hong Kong stocks dropped on concerns China’s property market will struggle to overcome a multi-year slump, forcing funds to cut their holdings. Some companies based in Gansu weakened after an earthquake struck the northwestern Chinese province.
The Hang Seng Index fell 0.8 per cent to 16,505 on Tuesday. The Tech Index dropped 0.6 per cent, while the Shanghai Composite Index rose 0.1 per cent.
Developer Longfor Group slumped 5.5 per cent to HK$12.10. Country Garden Services tumbled 12 per cent to HK$6.11 after issuing a profit warning on asset impairment. Alibaba Group lost 0.6 per cent to HK$71.65 and e-commerce peer JD.com weakened 2.7 per cent to HK$102.70, while Meituan sank 5.7 per cent to HK$78.45.
“China’s economic recovery has yet to gain further traction,” said Shen Fanchao, an analyst at Zheshang International in Hong Kong. “In such a scenario, we recommend more diversified stock allocations.”
China’s real estate…
