Tencent, PetroChina lead stock slide in Hong Kong on weak China data while US delisting risk

The Hang Seng Index $Hang Seng Index(800000.HK)$ dropped 0.7 per cent to 20,040.86 at the close, retreating from a one-week high. The Hang Seng Tech Index $Hang Seng TECH Index(800700.HK)$ swung to a 1 per cent loss from an almost 1 per cent gain, while the Shanghai Composite Index $SSE Composite Index(800146.HK)$ fell less than 0.1 per cent.

Tencent Holdings $TENCENT(00700.HK)$ fell 1.3 per cent to HK$300.40 on Monday. PetroChina $PETROCHINA(00857.HK)$ , China Life Insurance $CHINA LIFE(02628.HK)$ and China Petroleum & Chemical Corp $SINOPEC CORP(00386.HK)$ were also among the worst performers, losing from 2.4 per cent to 3.4 per cent after they opted to delist from the New York Stock Exchange.

Industrial production rose 3.8 per cent in July from a year earlier, while retail sales climbed 2.7 per cent, the statistics bureau said on Monday. The pace slowed from June, and also missed consensus estimates of 4.6 per cent and 5.3 per cent, respectively. Growth in fixed-asset investment slowed.

Sentiment remained fragile even after the People’s Bank of China unexpectedly cut interest rates on one-year medium-term lending facilities (MLF) by 10 basis points, the first reduction since January.