ong Kong shares dropped more than 1 percent on Friday to a 2-month low, capping a dismal week as investors stayed sidelined on weak China economic data and ahead of a likely U.S. interest rate hike.

Problems at Chinese conglomerate Fosun Group also hurt investor sentiment.

The Hang Seng index fell 1.1 percent, to 21,464.05, ending the week with a 3.5 percent loss, the worst performance in three months.

The China Enterprises Index lost 1.5 percent, to 9,308.00 points.

Financial magazine Caixin late on Thursday cited unidentified sources saying that Guo Guangchang, the billionaire founder of Chinese conglomerate Fosun Group could not be contacted.

The media reports raised fears that Guo had become the latest victim in China’s deepening anti-corruption probe, and triggered share suspensions on Friday by listed companies affiliated to Fosun, including Hong Kong-listed Fosun International Ltd.

Some analysts, however, expect the market to rebound, if next week’s Fed meeting removes uncertainty surrounding the timetable of U.S. monetary tightening.

But the market may continue to be slack if the message is mixed, he added.


Source : Reuters