Hong Kong stocks tumble to one-month low, following 4-day slump in mainland market

Hong Kong’s benchmark stock index fell to a one-month low on Wednesday, led by declines among casino operators, property developers and energy companies, dragged down by four days of sell-off in the mainland Chinese exchanges over tightened regulatory scrutiny of financial malfeasance in banking and insurance.

The city’s benchmark Hang Seng Index slid 0.4 per cent, or 98.7 points, to 23,825.88, a level unseen since March 15. The Hang Seng China Enterprises Index, which tracks the so-called H shares sold by Chinese companies, declined 0.6 per cent to 9,983.7, the lowest level in more than two months.

Trading turnover increased 2 per cent to HK$72.2 billion.

“Hong Kong’s market continues to be affected by the negative sentiment on the mainland, as banking regulators tightened their supervision in shadow banking and in the wealth management business,” said Victor Au, chief operating officer at Delta Asia Financial Group. A 3 billion yuan scandal at Minsheng Bank, the country’s first private-sector lender and usually regarded as a bellwether of competitive and competent management, “added to investors concerns,” he said.

Mainland stock indexes have dropped for four consecutive days to close at the lowest levels in more than two months, as the fall in financial and property sectors offset a slight rebound in stocks related to the Xiongan New Area and recently listed stocks.

The Shanghai Composite Index lost 0.8 per cent to 3,170.7, the lowest close since February 8. The CSI 300 Index, which tracks large companies listed in both Shanghai and Shenzhen, fell 0.5 per cent to its one-month low of 3,445.9.