Hong Kong stocks dip as China’s borrowing slowdown hits investor confidence

The Hang Seng Index slid 0.2 per cent to 20,389.67 at 10am on Tuesday, while the Tech Index dropped 0.4 per cent. The CSI 300 Index added 0.9 per cent, and the Shanghai Composite Index advanced 0.4 per cent.

Automobile dealer Zhongsheng Holding led losses, falling 3.8 per cent to HK$18.22, while aluminium producer China Hongqiao Group fell 2.8 per cent to HK$13.86. Electric vehicle makers dropped: BYD by 1.6 per cent to HK$30.35 and Li Auto by 0.2 per cent to HK$95.45.

China’s credit expansion slowed more than expected in October, data released by the People’s Bank of China on Monday showed. Chinese banks extended 500 billion yuan ($69.51 billion) in new yuan loans in October, well below the expectation of 700 billion yuan among analysts polled by Reuters.

Volatility in Chinese equities is expected to continue in the near term as investors trade on policies and await further potential fiscal stimulus, said Vivian Lin Thurston, portfolio manager for emerging markets growth at investment bank William Blair.