No relief in sight for Hang Seng woes

Hong Kong shares are expected to continue falling once China releases more disappointing economic data this week.

Shares have tumbled since July 6 over disappointing economic news from China that included weak import growth and waning domestic demand. The Hang Seng Index lost 0.2% yesterday while turnover was among the lowest for the year so far.

In China, the CSI300 Index closed 0.4% lower at 2,406.7, the lowest since Jan. 16. The Shanghai Composite Index shed 0.3% as trading volumes dropped 21% from Monday.

"Turnover is not going to improve anytime soon with data now suggesting the slowdown in the Chinese economy is nowhere near a bottom," said Edward Huang, an equity strategist with Haitong International Securities.

"First half earnings announcements are not going to be pretty.”

Mainland Chinese markets dropped to six-month lows after data showed China's imports rose 6.3% in June from a year earlier, less than half the 12.7% increase forecast by Reuters.