Hong Kong stocks slip on China property woes while Nio gains on fund injection

The Hang Seng Index fell 0.6 per cent to 16,527.75 at the noon break. The Tech Index dropped 0.5 per cent, while the Shanghai Composite Index was little changed.

Country Garden Services tumbled 9.8 per cent to HK$6.24 after issuing a profit warning on asset impairment. Developer Longfor Group slumped 3.8 per cent to HK$12.32. Alibaba Group lost 0.5 per cent to HK$71.75 and e-commerce peer JD.com weakened 2.3 per cent to HK$103.10, while Meituan sank 6.1 per cent to HK$78.10.

“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 market crisis continues to claim fresh victims as funding stress persists, with state-backed developer China South City seeking to restructure US$1.35 billion of bonds this week. Mainland funds sold US$1.3 billion of Hong Kong-listed stocks last week, according to Goldman Sachs.

The Hang Seng Index has dropped 16 per cent this year, putting it on course for an unprecedented four-year slide. The benchmark tracking major stocks in Shanghai and Shenzhen is set for a record third year of losses.

111 dead and hundreds hurt after earthquake strikes Gansu in northwestern China

Gansu Engineering Consulting fell 2.8 per cent to 11.14 yuan in Shenzhen, while DuZhe Publishing plunged 9.5 per cent to 7.99 yuan in Shanghai. A 6.2-magnitude earthquake hit the Chinese province overnight, killing more than 110 people.

Machine maker Wuxi Lingood Machinery Technology surged 166 per cent to 14.90 yuan on the first day of trading in Beijing.

Other major Asian markets were mixed. The Nikkei 225 rose 1.2 per cent after Japan’s central bank kept unchanged its negative interest-rate policy. Australia’s S&P/ASX 200 added 0.9 per cent, while South Korea’s Kospi retreated 0.1 per cent.