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HK stocks sink 6.4% as Xi appoints loyalists in leadership team

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China Q3 GDP grew more than expected but outlook cloudy

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S.Africa mid-term budget due on Wed

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Turkey tightens lending rules to support lira

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Czech inflation near peak - cenbank member

Oct 24 (Reuters) - Emerging market stocks slumped 2% to 2-1/2 year lows on Monday, as China shares were routed by policy worries following President Xi Jinping's appointment of loyalists, while South Africa's rand declined ahead of the mid-term budget this week.

Hong Kong stocks sank 6.4%, with the tech and properties indexes down around 10% each. Benchmarks in the mainland fell 2.0% and 2.9% respectively.

The moves came after President Xi clinched a third term and unveiled a leadership team of loyalists that heightened fears economic growth will be sacrificed for ideology-driven policies.

Data on Monday showed China's third-quarter GDP grew faster-than-anticipated, but persistent COVID-19 curbs, a prolonged property slump and global recession risks clouded the outlook.

The offshore yuan hit an all-time low against the dollar.

"The changes in leadership suggest little chance of fresh stimulus or changes in COVID policy in the months ahead. As such, we still see growth and CNY underperformance," said Mitul Kotecha, head of EM strategy at TD Securities.

MSCI's index of emerging market stocks, heavily weighted towards China, was on course for its worst session in two weeks. It has lost more than 30% so far this year, on course for its worst year since 2008, as worries about Chinese growth and global central bank tightening heighten recession fears.

The developing world currencies index is on track for its worst year on record. On Monday, South Africa's rand was among the biggest decliners, down 1.2% with power utility Eskom implementing more power cuts as it struggles with aging coal-fired plants.

Investors will also be keeping an eye on the government's mid-term budget due on Wednesday, with this year's projected budget deficit seen trimmed thanks to buoyant mining receipts. Transfer of some of Eskom's debt will also be watched for.

Turkey's lira inched lower. Turkey tightened lending rules for many companies with more than $500,000 in foreign currency cash, in the latest step to support the lira which has lost 28% this year.

Russia's rouble stabilised as investors looked ahead to Friday's central bank rate decision. After cutting to 7.5% the central bank is seen holding rates until year-end as inflation remains elevated.

Hungary's forint led losses in central Europe against the euro, down 0.9%, while the Czech crown was flat.

Czech inflation is near its peak, a central bank board member said. But a possible pause in interest rate hikes could pressure the crown, Commerzbank analysts said. For GRAPHIC on emerging market FX performance in 2022, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2022, see https://tmsnrt.rs/2OusNdX

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For RUSSIAN market report, see (Reporting by Susan Mathew in Bengaluru; Editing by Kirsten Donovan)