Declines In China ADRs Send Hong Kong Stocks Into Bear Market

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.”


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu