Hong Kong stocks slipped as risk appetite waned after a government report showed China’s economy slowed more than market expected last quarter while manufacturing cooled amid a power crisis. Tech stocks retreated on regulatory concerns.
The Hang Seng Index fell 0.6 per cent to 25,175.15 as of 10.23am local time while the Shanghai Composite Index declined 0.8 per cent to 3,545.64.
Financial stocks led losses with Ping An Insurance and Industrial and Commercial Bank of China retreating by more than 1 per cent. China Merchants Bank declined 0.9 per cent.
The Hang Seng Tech Index slid 1.2 per cent, paced by 2.8 per cent loss in Meituan. Tencent Holdings dropped 0.7 per cent while Kuaishou slumped 4.7 per cent. China’s Ministry of Industry and Information Technology said it will deepen the scrutiny on internet companies under an ongoing six-month campaign.
China’s gross domestic product expanded 4.9 per cent from a year earlier, the statistics bureau said, trailing the consensus for a 5 per cent gain in a Bloomberg survey. The economy grew 7.9 per cent and 18.3 per cent in the preceding two quarters.
Other reports on Monday showed industrial production rose 3.1 per cent last month, versus a 3.8 per cent consensus estimate, reflecting the impact of an energy shortage in many provinces. Gain in retail sales was better than expected at 4.4 per cent.
Three stocks began trading for the first time. In Shanghai, Beijing Fjr Optoelectronic Technology soared 90 per cent to 42.98 yuan in Shanghai while Beijing Asiacom Information Technology jumped 76 per cent to 37.86 yuan in Shenzhen and Acrobiosystems rose 54.8 per cent to 174.11 yuan.