HONG KONG: Stocks in China and Hong Kong slid on Thursday, after Beijing’s latest measures to revive the struggling property sector failed to boost investors’ mood and concerns over US-China relations intensified with reports of Trump’s expanding influence.
The Shanghai Composite index and China’s blue-chip CSI300 index both lost 1.7% at close, the biggest retreat in nearly a month.
Hong Kong’s benchmark Hang Seng Index tumbled 2% to a new seven-week low.
China’s latest effort to shore up the crisis-hit property sector via tax incentives on home and land transactions failed to improve stock prices in the sector.
The CSI real estate index was down 2.1%, and the Hang Seng Mainland property Index tumbled 3.6%. Developer Longfor was among the top losers in Hong Kong, falling 7.2% to its lowest since late September.
Losses deepened in the afternoon session amid renewed worries about Trump’s China policy, following reports that he is set to control both houses of Congress when he takes office in January.
Trump’s nomination of China hardliner Marco Rubio for secretary of state has also fueled concerns that his policy toward Beijing could extend beyond tariffs and trade.
“Trump could be able to push forward his policies more easily with control on both houses and the cabinet filled with hawks,” said Dickie Wong, executive director at Kingston Securities in Hong Kong.
“The concern now is that more anti-China measures could come through.”
Bucking the trend, Chinese technology company Tencent climbed as much as 2.8% after posting an 8% rise in September-quarter revenue.
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