Hong Kong stocks fall to 3-week low amid growth, deflation worries

By Reuters/Samuel Shen and Pete Sweeney May 4, 2016 | 03:07 am PT

A staffer walks into the Hong Kong Stock Exchange in Hong Kong October 28, 2014. : REUTERS/BOBBY YIP

Hong Kong shares fell to a three-week closing low on Wednesday, tracking sluggish trading in Asian markets as worries about global growth and creeping deflation resurfaced.

The Hang Seng index fell 0.7 percent, to 20,525.86, while the China Enterprises Index lost 0.6 percent, to 8,697.37 points.

Energy, raw material and financial shares led main indexes lower.

Index heavyweight HSBC Holdings Plc dropped 2.5 percent. The lender stuck to its promise of higher dividends on Tuesday, after a 14 percent profit drop fuelled doubts among some investors about the bank's ability to increase payouts.