"Hong Kong Stock Discount Reveals China's Economic Gloom"
Originally Published 2 years ago — by Yahoo Finance
Chinese stocks listed in Hong Kong plunged, widening their discount to mainland peers to the deepest in fifteen years, reflecting growing pessimism among international investors. The Hang Seng China Enterprises Index fell 2.4%, nearing a level last seen almost two decades ago, while the onshore benchmark CSI 300 Index finished 1.6% lower. The steeper losses in Hong Kong, where influential Chinese firms are listed and Beijing’s interference is less felt, paint a worrisome picture of global investor sentiment toward the world’s No. 2 economy. The slump is attributed to a confluence of factors, including a deepening housing slump, deflationary pressures, and uncertainties about US interest rates. The mood is similarly fragile in the mainland Chinese market, with the benchmark CSI 300 hitting a new five-year low.
