Chinese equities in Hong Kong entered a bear market on Tuesday as the Hang Seng China Enterprises Index fell 2%, extending its decline to 20% from its October 2 peak. Major constituents including Tencent Holdings and Alibaba Group Holding weighed on the gauge, reflecting souring sentiment over tepid consumer spending and fading confidence in e-commerce firms. Jason Chan, senior investment strategist at Bank of East Asia, noted that the index lacks the large hardware tech leaders that have supported stronger performances in markets such as South Korea and Taiwan, while earnings consensus kept revising down, mainly dragged by consumer-related stocks. The MSCI China Index dropped 2.6% and was set to close in a bear market, while the onshore CSI 300 Index declined 2.8%. The selloff extended across Asia, with a regional equities gauge falling 3.5% and South Korea's Kospi tumbling 10%, triggering a trading halt.
Bank Of E Asia
MSCI Inc
Tencent Holdings Ltdweighed on index due to fading confidence in e-commerce and tepid consumer spending
Alibaba Group Holding Ltdweighed on index due to fading confidence in e-commerce and tepid consumer spending