Hong Kong stocks post biggest weekly drop in 6 months on renewed virus woes

Hong Kong stocks ended lower on Friday, posting their biggest weekly drop in six months, tracking a global correction as a resurgence in coronavirus cases globally raised concerns about the pace of economic recovery.

At the close of trade, the Hang Seng index was down 75.65 points, or 0.32pc, at 23,235.42.

The Hang Seng China Enterprises index fell 0.73pc to 9,302.59.

For the week, HSI slumped 5pc, while HSCE shed 5.1pc, both posting steepest daily drop since the week ended March 20.

The sub-index of the Hang Seng tracking energy shares dipped 0.1pc, while the IT sector dipped 1.29pc, the financial sector ended 0.19pc lower and the property sector dipped 1.04pc.

The top gainer on the Hang Seng was CLP Holdings Ltd , which gained 2.15pc, while the biggest loser was Country Garden Holdings Co Ltd, which fell 3.87pc.

The Hang Seng index could remain sluggish in the short term as new listings drew liquidity and investors turned cautious ahead of China's week-long National Day Holiday starting Oct. 1, Guodu Hong Kong said in report.

Tech players weighed on the market, with the Hang Seng tech index retreating 6.1pc for the week.

Britain recorded its highest number of daily COVID-19 cases on Thursday, reflecting a second wave of the virus hitting the country, while Mexico is close to surpassing 75,000 confirmed coronavirus deaths.

Investors sold off China Evergrande Group shares and bonds, after a leaked document showed the nation's second-biggest property developer by sales sought government help to avert a cash crunch.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 2.15pc, while Japan's Nikkei index closed up 0.51pc.

The yuan was quoted at 6.8177 per US dollar at 0816 GMT, 0.14pc firmer than the previous close of 6.8275.