Shares in Hong Kong dropped to their lowest level since the end of the global financial crisis as investors reacted to the city’s economic recovery plans and the 20th Chinese Communist party congress in Beijing, where President Xi Jinping is expected to secure a third term.The benchmark Hang Seng index fell as much as 3 per cent to its lowest level since May 2009, while the China Enterprises index of large mainland companies listed in the city fell as much as 3.3 per cent.
The Hang Seng Tech index was also down as much as 4.8 per cent after the Nasdaq Golden Dragon index, which tracks Chinese tech groups trading in the US, closed trading on Wednesday down more than 7 per cent.
Hong Kong’s equities have underperformed US and European markets this year as geopolitical tension between Beijing and Washington rises. Shares have also suffered from a regulatory assault on the tech industry in China, where a real estate crisis is weighing on economic growth.