A sell off in Hong Kong and Chinese shares deepened following a slump in U.S. equities amid persistent concerns about a trade war.
The Hang Seng Index sank 3.8 percent, falling below the 26,000 support level, with every member of the gauge declining. Tencent Holdings Ltd., the most valuable stock listed in Asia, slid 7.3 percent and was in line for its biggest loss since October 2011. The Shanghai Composite Index slumped 4.3 percent to its lowest in four years. The yuan fell 0.1 percent to its weakest since Aug. 15.
The benchmark Hong Kong equity gauge has tumbled 16 percent this year as fears of a trade war between the U.S. and China spurred an exodus from what was the world’s best performing market as recently as January. Valuations are plummeting, with the price to earnings ratio falling into single digits this week for the first time in more than two years.
The Hang Seng Index was at 25,192 points at 11:34 a.m. Selling pressure is likely to increase as Hong Kong’s easy money era ends and worsening tensions between Beijing and Washington make investors more jittery. The HSI Volatility Index jumped 20 percent, the most since June 19.
Hang Seng Index heads for lowest close since May 2017. Hang Seng China Enterprises Index drops 4.2%, most since Feb. 9.
Shanghai Composite Index poised for biggest loss in eight months. Shenzhen Composite Index slumps 5.5%, at lowest since October 2014.
Source : Bloomberg