The Hang Seng Index dropped 2 per cent to 16,000.84 at local noon trading break, the lowest level since early November last year. The Tech Index lost 2.6 per cent while the Shanghai Composite Index slid 0.6 per cent.
Sportswear maker Li Ning tumbled 13.6 per cent to HK$18.44 after the company bought a 25-storey mixed office and retail building in North Point, Hong Kong, from Henderson Land for HK$2.2 billion (US$282 million) to house its headquarters.
“Deflation is already pervasive in the Chinese economy,” Arthur Budaghyan, chief China strategist at Montreal-based BCA, said in a note last week. “As long as deflation lingers and common prosperity policies are not abandoned, low equity multiples represent a value trap rather than an attractive buying opportunity.”
The Fed’s rate-setting committee meets on Wednesday. Policymakers are expected to maintain its key rate in the 5.25 per cent to 5.5 per cent range, according to data compiled by CME Group based on contracts on Fed fund futures.
Most Asian markets were mixed on Monday. Japan’s Nikkei 225 climbed 1.5 per cent and Australia’s S&P/ASX 200 added 0.1 per cent, while Korea’s Kospi index was little changed.