By Jiahui Huang


Hong Kong stocks slid further in the new year Monday, with investors selling off property and other names on fears that Beijing isn't moving fast enough to prop up the world's second-largest economy.

The benchmark Hang Seng Index slipped 2.3% lower to close at its lowest level since October 2022. That extends its losses since the start of the year to 12%, making it Asia's worst-performing major index in 2024.

The Hang Seng Properties Index shed 4.6% to its lowest level since 2009, while the Hang Seng Mainland Properties Index slumped 6.9%.

Part of the selloff was on disappointment that the Chinese central bank kept its loan prime rates unchanged Monday, with some investors interpreting the hold--after interest rates remained unchanged last week--as another sign that Beijing isn't moving on stimulus measures to help prop up the Chinese economy.

Although a hold "was largely expected, the market still raised concern over how and what the Beijing government will do to prop up the economy," said Sonija Li, Maybank's head of retail research. "[Recall] that Shanghai recently has implemented several easing policies yet still can't stimulate the market."

Losses Monday ran from property and tech to auto and consumer products stocks. The majority of large property developers shed more than 5%, with Kaisa Group dropping 21% and Longfor Group losing more than 10%.

Among tech stocks, Tencent shed 3.3%, taking its losses this year to 11%, while Meituan slipped 4.7%, extending its 2024 retreat to 20%.

"Historical low valuations bring little buying interest as the economic recovery in China fails to gather momentum and businesses are lacking confidence," Saxo Bank analyst Redmond Wong said in a note. He noted that last week, Premier Li Qiang ruled out "major stimulus" only for purposes of boosting short-term growth.

"Investors who are hoping for policy stimuli will very likely, in our opinion, continue to be disappointed," he said. "The market is still in the process of finding a bottom."


Write to Jiahui Huang at jiahui.huang@wsj.com


(END) Dow Jones Newswires

01-22-24 0632ET