Chinese Stocks Drop as Recovery Bets Get Sapped by Poor Earnings

  • The Hang Seng China gauge declines the most in two months
  • The CSI 300 Index suffered its biggest drop in three weeks
WATCH: Laura Wang of Morgan Stanley says she remains relatively cautious on Chinese markets within the global EM framework.Source: Bloomberg
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Chinese equities listed in Hong Kong fell by the most in two months, as a raft of disappointing earnings undermined expectations for a strong market recovery.

The Hang Seng China Enterprises index slid as much as 3.5%, while the onshore benchmark CSI 300 Index halted a five-week rally. The yuan dropping to a four-month low also sapped risk sentiment.