The continued selloff in Chinese shares is in stark contrast to a more optimistic Wall Street, where the S&P 500 Index climbed to a record on Friday for the first time in two years. It also came after China’s commercial lenders kept their benchmark lending rates unchanged, a move that follows the central bank’s recent decision to maintain borrowing costs but may disappoint investors hoping for more aggressive stimulus.
Chinese stocks in Hong Kong slumped toward their lowest level in almost two decades, as an absence of fresh economic stimulus and market support measures deepened investor pessimism.
The Hang Seng China Enterprises Index fell as much as 3.6% on Monday, edging closer to a level unseen since 2005 and making it one of Asia’s worst-performing key indexes. Chinese tech behemoths including Meituan and Tencent Holdings Ltd. were among the biggest drags.
