Hong Kong's Hang Seng slips as China data disappoints

Reuters2021-08-16

* Hang Seng index ends down 0.8%

* China Enterprises index HSCE falls 1.2%

* HSI financial sector sub-index is flat; property sector up 0.7%

Aug 16 (Reuters) - Hong Kong's HSI fell on Monday as weak data offered a gloomier outlook for China's economic recovery.

** At the close of trade, the Hang Seng index was down 210.16 points or 0.8% at 26,181.46. The Hang Seng China Enterprises index fell 1.2% to 9,265.24.

** China's factory output and retail sales growth slowed sharply and missed expectations in July, as new COVID-19 outbreaks and floods disrupted business operations, adding to signs the economic recovery is losing momentum.

** Investor sentiment regarding Chinese tech firms also took another hit following a state media commentary on the weekend calling for stronger vetting of online games and "zero tolerance" toward those that distort history.

** The IT sector fell 3.21% and the Hang Seng Tech index was down 2.57%.

** Trading volume was relatively light, with only about 1.48 billion Hang Seng index shares traded, roughly 69.4% of the market's 30-day moving average of 2.13 billion shares per day.

** China's main Shanghai Composite index (SSE Comp) closed up 0.03% at 3,517.34 points, while the blue-chip CSI300 index ended down 0.1%.

** Around the region, MSCI's Asia ex-Japan stock index

fell 0.49% and Japan's Nikkei index closed down 1.62%.

** The yuan was quoted at 6.4769 per U.S. dollar at 0812 GMT, little changed from its previous close at 6.4767.

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