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Hong Kong: Stocks post worst weekly performance in 3 months


[HONG KONG] Hong Kong shares dropped more than 1 per cent on Friday to a 2-month low, capping a dismal week as investors stayed sidelined on weak China economic data and ahead of a likely US interest rate hike.

Problems at Chinese conglomerate Fosun Group also hurt investor sentiment.

The Hang Seng index fell 1.1 per cent, to 21,464.05, ending the week with a 3.5 per cent loss, the worst performance in three months.

The China Enterprises Index lost 1.5 per cent, to 9,308.00 points.

Market voices on:

Financial magazine Caixin late on Thursday cited unidentified sources saying that Guo Guangchang, the billionaire founder of Chinese conglomerate Fosun Group could not be contacted.

The media reports raised fears that Guo had become the latest victim in China's deepening anti-corruption probe, and triggered share suspensions on Friday by listed companies affiliated to Fosun, including Hong Kong-listed Fosun International Ltd.

Some analysts, however, expect the market to rebound, if next week's Fed meeting removes uncertainty surrounding the timetable of US monetary tightening. "If the Fed gives a clear guidance on further rate rises, the market may see a relatively big rebound," said Steven Leung, a director at UOB Kay Hian in Hong Kong.

But the market may continue to be slack if the message is mixed, he added.