Chinese stocks fell for the first time in three days in Hong Kong trading, led by commodity producers, as data showing a slump in imports deepened concern about the outlook for the world’s second-biggest economy.
The Hang Seng China Enterprises Index, the best-performing Asian stocks measure in the past month, dropped 1.3 per cent to 10,405.41 at 3:27 pm local time.
PetroChina and Anhui Conch Cement retreated more than 2 per cent. A trade report showed imports plunging 17.7 per cent in September, an 11th straight decline, compared with an estimate for a 16.5 per cent drop.
Exports weakened less than forecast. The Shanghai Composite Index rose 0.2 per cent to 3,293.23 at the close as technology and consumer companies rallied.
“The data are not good but still acceptable to investors,” said Wu Kan, a Shanghai-based fund manager at JK Life Insurance.
“As long as the data remain sluggish, the market will be anticipating growth-boosting measures from the government.”
The CSI 300 Index slipped 0.1 per cent.
Tuesday’s loss for the H-shares gauge puts a halt to a 14 per cent rally since the September low.
Chinese stocks have rebounded amid speculation the country’s central bank will reduce interest rates or reserve-requirement ratios and policy makers will introduce more measures to boost growth.
The government announced over the weekend it will expand a relending trial to nine more cities and provinces, while Premier Li Keqiang said policy makers will increase fiscal support for shantytown redevelopment.
The drop in imports compared with the forecast for a 16.5 per cent drop and the previous month’s 14.3 per cent decrease, according to data from the customs administration on Tuesday.
Overseas shipments fell 1.1 per cent, compared with a 6.1 per cent decline in August and the forecast for a 7.4 per cent slide.
The trade surplus was 376.2 billion yuan ($59.4 billion). Imports show waning domestic demand that won’t immediately be countered by exports, which may spur more stimulus to help support growth, economists at Huabao Trust and Everbright Securities said in interviews.
PetroChina, the nation’s biggest oil company, dropped 2.4 per cent in Hong Kong and slid 1 per cent in Shanghai.
Anhui Conch, China’s biggest cement maker, lost 2.2 per cent in Hong Kong. Inflation data are due on Wednesday. Growth in consumer prices probably slowed to 1.8 per cent, according to the Bloomberg survey. Data on third-quarter economic growth will be released next week.
The Communist Party of China Central Committee will hold a key meeting during October to deliberate on an economic and social development plans for China over the next five years, the official Xinhua News Agency reported.
