Hong Kong stocks tumble after China Evergrande scraps creditor meetings

Hong Kong stocks tumble after China Evergrande scraps creditor meetings, triggering concerns about the property sector

    China Evergrande lost about a quarter of its value after saying that creditor meetings scheduled for this week would be scrapped because of poorer-than-expected sales. Property stocks led the pack of decliners as the mood darkened amid worries China’s piecemeal stimulus measures would be insufficient to arrest an economic slowdown.

Hong Kong stocks fell by the most in three weeks on Monday, amid concerns China’s property woes will intensify after China Evergrande Group, the world’s most indebted developer, cancelled creditor meetings in a setback to its debt restructuring plans.

The Hang Seng Index slid 1.8 per cent to 17,729.29 at close, adding to last week’s 0.7 per cent fall. The Hang Seng Tech Index dropped 2.7 per cent and the Shanghai Composite Index retreated 0.5 per cent.
Property stocks led the pack of decliners after China Evergrande said that six creditor meetings scheduled for this week would be scrapped because of poorer-than-expected sales. Longfor Group slid 6.5 per cent to HK$14.16 and Country Garden Services Holdings slumped 4.3 per cent to HK$8.21. E-commerce platform JD.com dropped 4.1 per cent to HK$115.40 for a record-low close and Tencent Holdings sank 2.9 per cent to HK$304.40.