The Hang Seng Index fell 0.4 per cent to 16,280.07 as of 11.16am local time, heading for the lowest close since November 10, 2022. The gauge has lost 3 per cent this week. The Tech Index dropped 0.8 per cent and the Shanghai Composite Index added 0.4 per cent.

Tencent lost 1.9 per cent to HK$302.20 after Prosus sales of 513,500 shares in the company on Thursday triggered concerns about further offloading by its major shareholder. Alibaba Group slipped 0.1 per cent to HK$69.65 and its peer JD.com lost 0.4 per cent to HK$103.60. Chinese property developer China Overseas Land and Investment tumbled 4.6 per cent to HK$12.86 and peer China Resources Land retreated 3.9 per cent to HK$25.90.

Limiting losses, online travel agency Trip.com Group added 1.5 per cent to HK$260 after Singapore announced it will allow Chinese tourists to enter the country without visas. New World Development added 0.6 per cent to HK$11.06 after its founder, billionaire Henry Cheng’s family, increased its stake in the Hong Kong-based developer.

“While Hong Kong stocks are cheap, they have limited upside room for now because of the lack of catalysts as China’s economic data falls short of expectations and the drop in US Treasury yields is not as fast as expected,” said Cao Liulong, an analyst at Founder Securities. “Stocks will be meandering through the rest of the year until we see more clarity of policy support.”

Sentiment on Hong Kong stocks has taken a beating from China’s unexpected import contraction and Moody’s Investors Service decision to cut the outlook on the ratings of the sovereign and the country’s top banks. Official data due over the weekend may also show consumer and producer prices shrank by 0.2 per cent and 2.8 per cent, respectively, in November, intensifying deflation concerns.

The Hang Seng Index has dropped 18 per cent this year, making it the worst performer among the world’s key benchmarks this year, erasing US$631 billion in market value.

Shenzhen VAPEL Power Supply Technology, a power equipment maker, surged 371 per cent to 32.35 yuan in Shenzhen on its first day of trading.

Other major Asian markets were mixed. Japan’s Nikkei 225 slid 1.7 per cent, while South Korea’s Kospi rose 0.8 per cent and Australia’s S&P/ASX 200 added 0.2 per cent.