"Concerns over Chinese Markets Prompt Heavy Selling, Hong Kong Stocks Make Biggest Retreat in Seven Weeks"

Hong Kong stocks experienced their largest retreat in three months as the Hang Seng Index fell 2.2%, reaching a 14-month low, amid concerns about China's economic outlook. The decline was driven by a potential mixed picture for China's recovery, with a record low for a gauge tracking mainland developers in Hong Kong. Investors are awaiting the release of 2023 economic data, with expectations of a 5.2% increase in China's GDP and concerns about the strength of the mainland economy. The underwhelming performance of Hong Kong stocks this year has raised concerns, with the index slipping 2.3% this week and 4.7% in the first two trading weeks. Additionally, other major Asian markets, including Japan's Nikkei 225, South Korea's Kospi, and Australia's S&P/ASX 200, also traded lower.