Hong Kong Stocks Drop Most in Week as China Data Miss Estimates

Hong Kong Stocks Drop Most in Week as China Data Miss Estimates

Bloomberg, (15/4) -- Hong Kong stocks fell the most in more than a week as reports showed Chinese economic growth and industrial production expanded less than economists estimated. “Economic growth in mainland China is not as good as the market expected,” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong. “The market still has to go lower, especially this week; we expect the market is going to see a short-term bottom.” The Hang Seng Index dropped 1.4 percent to close at 21,772.67 in Hong Kong. China’s GDP expanded 7.7 percent in the first quarter from a year earlier, the National Bureau of Statistics said in Beijing today. That compares with a median estimate of 8 percent in a Bloomberg News survey of 41 economists. All but three stocks slid on the city’s benchmark gauge, which dropped the most since April 5 and became the developed world’s worst-performing benchmark gauge this year. Trading volume was about 13 percent below the 30-day intraday average, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland shares dropped 2 percent to 10,440.76. Every industry group on the Hang Seng Composite Index, the city’s broadest equity measure, retreated today. Hang Seng Index futures declined 1.6 percent to 21,770. The HSI Volatility Index increased 7.7 percent to 17.83, its highest level since March 18, indicating traders expect a swing of 5.1 percent for the equity benchmark in the next 30 days.