by Kana Nishizawa
(Bloomberg) – China’s stocks slumped in Hong Kong to their lowest level in two years as mainland markets remained closed.
The Hang Seng China Enterprises Index lost 2.2 percent to 9,097.43 at 11:54 a.m. in the city, led by energy and financial companies. The measure has tumbled 6.6 percent this week and is poised for its lowest close since July 2013. Hong Kong financial markets were shut on Thursday for a holiday. The Hang Seng Index dropped 0.7 percent.
The gauge of Chinese stocks in Hong Kong has tumbled 24 percent this year, the worst performing index in the world after Peru, as a slowdown in China’s economy deepened and the boom in mainland equities turned to bust. Investors are looking to Monday’s reopening of Chinese bourses amid speculation the government intervened to shore up equities this week before Thursday’s military parade.
Read Also:Â Chinese stocks hammered again, 8.5% drop wipes out all gains of 2015 bubble
China Vanke Co. tumbled 6.7 percent, while China Pacific Insurance Group Co. slid 4.9 percent. PetroChina Co. was poised for its lowest close since 2009.
The Hang Seng China Enterprises gauge trades at 6.5 times reported earnings, the lowest level in more than a decade.
