Hong Kong Stocks and China Stocks Experience Decline as Economic Data Raises Concerns

Market Overview of Hong Kong and China Stocks

Hong Kong stocks and China stocks fell after a series of sluggish economic data highlighted the urgency for fiscal stimulus in the region. The Hang Seng Index fell 0.6% to 20,976.99 as of 10:03 AM local time. The Hang Seng Tech Index eased 0.1%. Meanwhile, the CSI 300 Index lost 0.1%, and the Shanghai Composite Index retreated 0.2%.

Key Highlights

• Gold producer Zijin Mining Group declined 2.7% to HK$16.82 amid falling bullion prices.
• Baidu and Trip.com Group fell 1.7% to HK$96.75 and 1.8% to HK$491.20, respectively.

In recent reports, China's exports grew 2.4% year-on-year in September, marking the slowest pace since May. Moreover, new yuan loans from last month fell below estimates, prompting concerns over economic momentum.

Looking Ahead

Investors are keeping a close watch on China's National People's Congress, set to convene later this month, with discussions likely around increasing government borrowing and issuing special government bonds to bolster the economy. Finance Minister Lan Foan hinted at potential increases in debt levels, indicating a proactive approach to fiscal policy.

Regional Market Reactions

In contrast, other major Asian markets rose as US stocks hit fresh record highs overnight. Japan’s Nikkei 225 climbed 1%, South Korea’s Kospi increased 0.1%, and Australia’s S&P/ASX 200 added 0.8%.