by Jiaxing Li at scmp.com
Hong Kong stocks retreated from a six-week high on speculation China will offer limited stimulus to shore up the economy in its pursuit of “high quality” growth. Alibaba Group Holding and JD.com tumbled on concerns about weaker than expected online spending.
The Hang Seng Index lost 0.6 per cent to 19,912.89 at the close of Monday trading, after gaining a cumulative 7 per cent over the past three weeks. The Tech Index dropped 1.3 per cent and the Shanghai Composite Index declined 0.5 per cent.
Alibaba Group slid 2.1 per cent to HK$89.70, while JD.com lost 1.9 per cent to HK$154.40 and Tencent dropped 1.6 per cent to HK$357.20. Developer Country Garden crashed 5.3 per cent to HK$1.77, while peer Longfor Group weakened 0.2 per cent to HK$20.45. Apparel maker Anta Sports slumped 4 per cent to HK$87.90, while biotech firm WuXi Biologics lost 1.6 per cent to HK$46.70.“
Investors have become impatient and demand more than just rate cuts,” said Redmond Wong, strategist at Saxo Capital Markets Hong Kong. China’s central bank could cut loan prime rates this week and deploy other tools, such as liquidity injection and bond financing quotas, he added.