Chinese shares slumped in New York trading after a gauge of Hong-Kong listed companies entered a bear market amid mounting concern that growth in the world’s second-largest economy is slowing.
Goldman Sachs Group Inc. cut this year’s forecast for Chinese economic growth to 7.3 percent while solar-cell maker Baoding Tianwei Baobian Electric Co. said trading in its bonds will be halted, adding to concern that bad debts are increasing. The government is targeting 7.5 percent growth this year, which would be the slowest pace since 1990.
“The trimming of forecast is not optimistic,” Tony Hann, the head of emerging-market equities at Blackfriars Asset Management Ltd. in London, said by phone yesterday. “Such moves add up to the general uncertainty among investors around China. I’m not surprised investors are leaving as they are obviously concerned.”