Stocks slide on property debt, Macau casino risks while Alibaba drags tech

JPMorgan downgraded Shimao Group on heightened liquidity concerns, stoking default risks among Chinese developers

Hang Seng Properties Index has declined 4.5 per cent, erasing more than US$6 billion of market value since December 9 when China Evergrande and Kaisa defaulted on their debts

Hong Kong stocks slipped for a third day as financial troubles among Chinese developers reignited concerns about debt defaults and cracks in China’s property market.

The Hang Seng Index retreated 1.3 per cent to 23,653.16 at the local noon trading break. The Tech Index lost 2 per cent while China’s Shanghai Composite Index dropped 0.3 per cent.

Property stocks were among the biggest losers. Country Garden Services sank 8.7 per cent, China Resources Land slid 4.7 per cent and China Overseas Land weakened 3.5 per cent. Alibaba Group, Tencent Holdings and Meituan fell by at least 1.2 per cent.

Source: https://www.scmp.com/business/markets/article/3159597/hong-kong-stocks-slip-shimao-downgrade-reignites-debt-concerns