HONG KONG: Hong Kong stocks sank more than three percent in the afternoon session Tuesday, extending a sell-off in response to disappointment over China’s lack of detail on a raft of recently unveiled stimulus measures.
The Hang Seng Index dived 3.54 percent, or 746.42 points, to 20,346.45, while the Shanghai Composite Index shed 2.00 percent, or 65.63 points, to 3,218.70.
Markets were sent soaring after Beijing last month began unveiling a slew of measures aimed at kickstarting the world’s number two economy, particularly the troubled property sector.
But a news conference on Tuesday that was hoped would see more announcements fell well short of expectations, while a second briefing on Saturday also left traders wanting.
Tech giants including Alibaba and Tencent tumbled, along with developers who had rocketed in the wake of the announcements.
Below-forecast readings on trade and inflation reinforced the view that officials needed to do more to reignite growth.
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“While recent moves to prop up the economy are a step in the right direction, bigger concerns loom,” said Stephen Innes at SPI Asset Management.
“If China’s manufacturing and export sectors – the backbone of its economy – start to wobble, the already shaky property market will face even more strain, turning what is already a ticking time bomb into a full-blown crisis.”
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