(Bloomberg) -- Losses in Chinese equities accelerated Tuesday, with a gauge of stocks in Hong Kong heading for its lowest level in a year.

The Hang Seng China Enterprises Index was down 1.4 percent as of 10:30 a.m, while the Shanghai Composite Index slid for a third day after posting its first weekly gain since mid-May.

“The rebound last week was built on expectations of improving economic fundamentals and liquidity conditions as well as a slowdown in deleveraging, while the latest data suggest otherwise,” said Ken Chen, Shanghai-based analyst with KGI Securities Co. “Investor confidence weakened and stocks will likely remain weak before China rolls out monetary and fiscal policy stimulus.”

Both gauges have fallen 11 percent in the past month amid signs of slowing economic growth and growing trade friction between China and the U.S., putting them among the worst performing stock indexes worldwide.

China’s Cooling Economy Spells Trouble Ahead for Global Growth

Lenders and oil companies were the main drags on the Hang Seng China Enterprises Index. Industrial & Commercial Bank of China Ltd., China Construction Bank Corp. and Bank of China Ltd. fell at least 1.1 percent, while PetroChina Co. and Cnooc Ltd. both lost more than 3 percent.

To contact Bloomberg News staff for this story: Amanda Wang in Shanghai at twang234@bloomberg.net

To contact the editors responsible for this story: Richard Frost at rfrost4@bloomberg.net, Will Davies

©2018 Bloomberg L.P.