Hong Kong Market falls on disappointing China economic data

Hong Kong stock market finished session lower on Monday, 16 August 2021, extending losses for third session in row, as fresh signs of a slowdown in the world's second-largest economy after disappointing economic data hit market sentiment. Meanwhile, concerns a resurgence in coronavirus cases in mainland China also dented appetite for risk.

At closing bell, the benchmark Hang Seng Index fell 0.8%, or 210.16 points, to 26,181.46. The Hang Seng China Enterprises Index dropped 1.2%, or 112.55 points, to 9,265.24.

The retreat in the market was driven by concern about growth momentum in China as official data showed China's factory output and retail sales growth both slowed in July as export growth cooled and new COVID-19 outbreaks disrupted business.

 

The National Bureau of Statistics of China reported that China's retail trade rose by 8.5% year-on-year in July 2021, down from 12.1% gain in the previous month. China's industrial production grew by 6.4% year-on-year in July, lower than the 8.3% growth recorded the previous month. On the other hand, fixed-asset investment increased by 10.3% in the first seven months of the year.

Shares of automakers declined as the China Association of Automobile Manufacturers said on Monday that car production plunged in the first 10 days this month, a sign that factories may be disrupted by the pandemic or extreme weather. BYD slumped 7.2 per cent to HK$253.60 while Geely Auto lost 6.7 per cent to HK$26.55.

Powered by Capital Market - Live News