Hong Kong stocks end lower on coronavirus second wave fears

Hong Kong stocks dropped on Monday, in line with broader Asia, as growing concerns about a new wave of coronavirus infections prompted a selloff in equities. ** At the close of trade, the Hang Seng index was down 524.43 points, or 2.16%, at 23,776.95.

Hong Kong stocks dropped on Monday, in line with broader Asia, as growing concerns about a new wave of coronavirus infections prompted a selloff inequities.

** At the close of trade, the Hang Seng index was down 524.43 points, or 2.16%, at 23,776.95. The Hang Seng China Enterprises index fell 1.8% to 9,655.83.

** The sub-index of the Hang Seng tracking energy shares dipped 2.1%, while the IT sector dipped 2.19%, the financial sector dropped 1.97% and the property sector fell 2.3%.

** The top gainer on the Hang Seng was CK Infrastructure Holdings Ltd, up 0.24%, while the biggest loser was Techtronic Industries Co Ltd, which fell 4.87%.

** Several districts in Beijing reinstated security checkpoints, ordered residents to be tested and closed schools on Monday in response to an unexpected resurgence of the coronavirus in the Chinese capital.

** Adding pressure on the market was weaker-than-expected factory data from the mainland.

** China's factories stepped up production for a second straight month in May, as the country shook off the economic torpor of the coronavirus, although the weaker-than-expected gain suggested the recovery remained fragile.

** Data on Monday also showed sustained contractions in retail sales and investment, a sign many sectors were still struggling with the effects of heavy shutdowns across the world's second-largest economy earlier this year.

** China's main Shanghai Composite index closed down 1.02% at 2,890.03 points, while the blue-chip CSI300 index ended down 1.2%.

** Around the region, MSCI's Asia ex-Japan stock index was weaker by 2.24%, while Japan's Nikkei index closed down 3.47%.

** The yuan was quoted at 7.0955 per U.S. dollar at 0818 GMT, 0.14% weaker than the previous close of 7.0859.

** At close, China's A-shares were trading at a premium of 26.22% over Hong Kong-listed H-shares.