Hong Kong stocks follow China, global markets lower on weaker yuan
Reuters
Published Aug 12, 2015 09:16
Hong Kong stocks follow China, global markets lower on weaker yuan
(Reuters) - Hong Kong stocks slid on Wednesday, following sluggish global and mainland markets, after China allowed its currency to depreciate sharply for a second day amid fresh signs that the economy is still struggling.
The Hang Seng index (HSI) fell 2.4 percent, to 23,916.02, while the China Enterprises Index (HSCE) lost 2.0 percent, to 11,042.79 points.
China's yuan fell for a second day and hit a four-year low on Wednesday, as the country published fresh data that showed growth in factory output, investment and retail sales were all weaker than expected in July.
Investors continued to dump Chinese airline shares on fears that a weaker yuan would translate into higher fuel bills and hurt sectors with heavy foreign debt.
China Eastern (HK:0670) fell 3.7 percent, China Southern (HK:1055) dropped 7 percent and Air China (HK:0753) lost 5.8 percent.
Hong Kong-listed exporters outperformed. Exporters including Johnson Electric (HK:0179) and VTech Holdings (HK:0303) ended the day firmer.
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Written By: Reuters
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