Balloon Controversy Threatens to Deepen China Stock Losses
- Key gauges in Hong Kong, China extend last week’s slump
- Market sentiment hit as US-China ties take turn for worse
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Chinese stocks extended losses as tension with the US over a suspected spy balloon triggered fears of economic retaliation by the Biden administration.
The Hang Seng China Enterprises Index, which tracks Chinese stocks trading in Hong Kong, slumped 2.7% Monday, taking its decline from a January high to 7.5%. The CSI 300 benchmark of mainland shares closed down 1.3%, capping its worst day since Dec. 20.