Most Hong Kong stocks fell, dragging the city’s benchmark index to a four-week low as investors shunned developers and banks before key policy decisions by the Federal Reserve and the city’s monetary authority this week. Investors also looked past Beijing’s latest vow to support foreign businesses.
The Hang Seng Index lost 0.3 per cent to 17,878.02 at 10.10am local time, the lowest level since August 23. The Tech Index declined 0.8 per cent while the Shanghai Composite Index retreated 0.3 per cent.
HSBC dropped 0.5 per cent to HK$60.45 while AIA Group slipped 0.8 per cent to HK$64.90 and New World Development weakened 0.5 per cent to HK$15.44. JD.com paced tech losses, sliding 1.2 per cent to HK$119.50 while Meituan lost 0.9 per cent to HK$120.90.
The Fed is almost certain to keep its target rate unchanged at 5.25 per cent to 5.50 per cent when policymakers meet on Wednesday, pausing for a second time in its tightening since March 2022, according to CME Group, based on Fed fund futures. The Hong Kong Monetary Authority is expected to follow in lockstep.
Some lenders in Hong Kong including HSBC and Standard Chartered are raising their mortgage rates this week to offset rising cost of funds in the local interbank market, a move that could dampen property prices, industry experts have said.
Hong Kong home prices may fall by 5% as 7 banks set to raise mortgage rates
Hong Kong home prices may fall by 5% as 7 banks set to raise mortgage rates
Stocks weakened even as China’s central bank chief Pan Gongsheng said authorities would strengthen efforts to stabilise trade and improve the environment for foreign businesses. That came as the yuan weakened to a one-week low of 7.2992 per US dollar in Hong Kong trading from 7.2910 on Monday.
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Elsewhere, EV maker BYD lost 0.6 per cent to HK$245.40 on reports that Asian producers will be excluded from the French car subsidy scheme. Peers Nio, Xpeng and Li Auto lost by 0.1 per cent to 4.6 per cent.
Other major Asian markets traded lower. South Korea’s Kospi fell 0.2 per cent and Australia’s S&P/ASX 200 dropped 0.4 per cent, while the Nikkei 225 Index in Japan slipped 0.9 per cent.
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The news is published by EMEA Tribune & SCMP
