Hong Kong stocks plunge in morning session
Shares tumbled in Hong Kong, led by property firms, after the Federal Reserve lifted interest rates and indicated a further three hikes next year.
The Hang Seng Index shed 1.69 percent, or 380.48 points, to 22,076.14 by the break. A Fed rate hike affects borrowing costs in Hong Kong as the city’s monetary policy is linked to the United States.
And the benchmark Shanghai Composite Index slipped 0.29 percent, or 9.22 points, to 3,131.31 but the Shenzhen Composite Index, which tracks stocks on China’s second exchange, rallied 1.13 percent, or 22.15 points, to 1,982.01.
Cheung Kong Property fell 2.62 percent to HK$50.15, while New World Development tumbled 3.03 percent to HK$8.31.
Sino Land sank 2.01 percent to HK$11.70 and Hang Lung Properties fell 2.30 percent to HK$16.96.
“The increase in interest rates will also have a negative effect on Hong Kong’s property stocks”, said Jackson Wong, a securities analyst at Huarong International.
He added the rate hike was causing China’s 10-year bonds to tumble, and the mainland’s banks were “performing a lot worse than the overall market” over concerns Beijing is stepping up efforts to curb capital outflows. TVJ
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