Hong Kong Stocks Decline Most in 7 Weeks on China Data

Hong Kong stocks fell, with the benchmark index headed for its biggest drop in almost seven weeks, as a preliminary survey showed China’s manufacturing unexpectedly contracting. Concern that the Federal Reserve will scale back stimulus also dragged shares lower.

Li & Fung Ltd. (494), a supplier to Wal-Mart Stores Inc., slumped 2.3 percent. PetroChina Co., the country’s biggest energy producer, declined 2.9 percent on lower oil prices.

The Hang Seng Index slid 1.8 percent to 22,830.32 as of 10:25 a.m. in Hong Kong, headed for its steepest drop since April 5. All but two companies fell on the 50-member gauge, with trading volume 25 percent higher than the 30-day intraday average. The Hang Seng China Enterprises Index (HSCEI) of mainland companies lost 2.1 percent to 10,817, erasing the month’s gain.

Futures on the Hang Seng Index declined 2 percent to 22,774. The HSI Volatility Index rose 2 percent to 16.64, indicating traders expect a swing of 4.8 percent for the equity benchmark in the next 30 days.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.