Stocks in Hong Kong fell on Monday as Beijing’s lacklustre policy announcement on Friday disappointed investors amid rising concerns about tariffs following the US election.

On Friday, the standing committee of China’s top legislature approved an additional 6 trillion yuan (US$835 billion) bond quota to defuse hidden local debts. The policy announcement has been seen as insufficient to inject life into the nation’s sluggish economy.

Sentiment suffers with prospect of tariffs, slower global growth, rising inflation and potentially fewer Fed rate cuts, say Nomura analysts.

While Hong Kong stocks pare losses in afternoon trading. The Hang Seng Index fell 1.7%, and the Hang Seng Tech Index fell 0.7%.

In terms of star stocks, SMIC, XPeng and Xiaomi rose about 4%; Alibaba turned positive; NIO and Tencent fell 2%; JD.com and Baidu fell about 3%; Meituan fell about 4%.