Tencent, HSBC, WuXi fall as Hong Kong stocks cap worst month since February on China slump, Fed rate outlook

Hang Seng Index completed the biggest monthly loss since February last year after an extended slump in Chinese manufacturing

The Federal Reserve is expected to keep interest rates unchanged later this week, offering no immediate relief to Hong Kong’s real estate squeeze

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A man works in a shop while a large screen showing the latest stock exchange and economic data is seen reflected on the window in Shanghai on January 29. Photo: EPA-EFE

Published: 10:39am, 31 Jan 2024Updated: 4:40pm, 31 Jan 2024

Hong Kong stocks capped the worst performance in 11 months after a report showed China’s manufacturing shrank this month, underlining inadequate stimulus to spur recovery. The Federal Reserve is seen holding rates this week, offering no immediate relief to the city’s real estate market.

The Hang Seng Index fell 1.4 per cent to 15,485.07 on Wednesday, bringing the retreat this month to 9.2 per cent, the most since a 9.4 per cent slump in February last year. The Tech Index tumbled 3 per cent and the Shanghai Composite Index lost 1.5 per cent.

This month’s setback is also the local market’s worst start to a year since January 2016 when the Hang Seng Index lost 10 per cent.

Alibaba Group weakened 2.3 per cent to HK$69.55 and e-commerce peer JD.com declined 3.1 per cent to HK$86.80, while Meituan slipped 4.4 per cent to HK$62.55. WuXi Biologics sank 8.3 per cent to HK$20.50 and its affiliate WuXi AppTec slid 4.1 per cent to HK$54. HSBC dropped 0.2 per cent to HK$61.25 after it was fined by a UK financial watchdog.