Hong Kong stocks fell to a two-week low, led by losses in Alibaba Group after former chairman and CEO Daniel Zhang Yong surprisingly departed from the e-commerce group amid a leadership transition.
The Hang Seng Index slipped 1.3% to 17,960.86 as of 9.54am local time from the level on Thursday. Local financial markets were closed on Friday because of bad weather warning. The Tech Index dropped 1.8% while the Shanghai Composite Index added 0.4%.
Alibaba Group dropped 2.9% to HK$88.20 and Tencent slipped 0.4% to HK$320 while JD.com fell 3.1% to HK$124.60. Chinese property developers Longfor Group tumbled 4.8% to HK$16.58 and peer Chinese Overseas Land and Investment lost 2.7% to HK$16.72.
Daniel Zhang Yong departed from Alibaba Group on Sunday, the company said in a filing on Monday, the day he was scheduled to step down as chairman and CEO and take over the running of its cloud intelligence unit. Eddie Wu, the new group CEO, will now oversee the cloud unit in acting capacity.
Alibaba Group is the owner of the South China Morning Post.
The Hang Seng Index fell 1% last week, snapping a two-week advance, after another report showing China's shrinking external trade data in August. Government reports over the weekend showed consumer prices climbed 0.1% from a year earlier, reversing a contraction in July. Producer prices dropped 3%, extending a deflation from an 11 straight month.
While valuations are appealing and selling pressure has passed its peak, Beijing needs to address real risks in the economy and investors' "absolutely reasonable" concerns about the growth outlook, CLSA said.
Two stocks debuted on Monday. Hangzhou Heatwell Electric Heating Technology surged 106% to 47.99 yuan in Shanghai, while auto-part maker Wuhu Foresight Technology rose 89% to 69.93 yuan in Shenzhen.
Other major Asian markets fell. Japan's Nikkei 225 slipped 0.1%, while South Korea's Kospi retreated 0.1% and Australia's S&P;/ASX 200 lost 0.3%.