Hong Kong Stocks at Three-Week Low Amid Weak Chinese Loan Demand

Hong Kong stocks fell to a three-week low due to weaker-than-expected loan demand in China. Despite some stability from a potential tax cut on home purchases, loan growth data highlighted fragile domestic demand. The Hang Seng Index dropped 1.7%, while China's CSI300 Index showed a slight gain.

Hong Kong stocks hit a three-week slump on Tuesday, underwhelmed by disappointing Chinese loan demand data for October. While mainland shares showed resilience, Hong Kong's Hang Seng Index fell 1.7%, eyeing a third consecutive day of losses.

The decline follows reports of Chinese banks extending 500 billion yuan in new loans—a significant drop from September's figures and below analyst expectations. Analysts from Bank of America cited fragile domestic demand affecting both households and businesses.

Investor sentiment, however, found slight relief from news of potential tax cuts on home purchases in China. Despite the overall downbeat mood, an index of China's real estate stocks inched up by 0.5% amidst technological stock declines in Hong Kong.

(With inputs from agencies.)