Hong Kong stocks slid, with the benchmark index capping the biggest decline in almost a month, after data showed China’s new credit fell in March from a year earlier and money supply grew at the slowest pace on record.
Asian shares fell this week, with the regional benchmark halting a two-week gain and Japan’s Topix index capping its worst week since June, as technology shares sank amid a global rout and the yen strengthened.
China’s Ministry of Finance failed to sell all of the bonds offered at an auction today for the first time in 10 months amid speculation short-term interest rates will climb as corporate tax payments tie up funds.
China’s first default is prompting investors to discriminate against privately-owned companies, boosting demand for local government bonds even as the central bank warns of the dangers of a $2.9 trillion pile of debt.
China may exempt electric-car buyers from paying purchase taxes as part of expanded state measures to bolster sales of such vehicles after past incentives failed to spur demand, Vice Premier Ma Kai said.
China’s benchmark money-market rate jumped to the highest level in more than a month after the central bank drained funds from the financial system and as the yuan’s drop fueled speculation capital inflows may be slowing.