Hong Kong stocks plunge 4 over global economy concerns
Date
2/11/2016 3:11:39 AM
(MENAFN- Asia Times) As trading began in Hong Kong after the lunar New Year holidays stocks sank after being caught up on bad news from other markets
Stocks were set for their biggest daily drop in six months after they reopened from a three-day break catching up with global peers. China-related stocks and banks were singled out for special punishment.
The China-enterprises index fell 5% its worst single-day performance since 24 August 2015 and was the top loser in Hong Kong as some investors preferred to execute their bearish China calls through the liquid Hong Kong market.
Technology shares also took a beating mirroring their global counterparts as investors were spooked by the fragility of the global economy and lenders' exposure to commodities.
Nitin Dialdas chief investment officer at Mandarin Capital in Hong Kong said: 'I think this is going to be a difficult year for investors and even a fledgling US economic recovery looks to be snuffed out by global markets developments.'
Volume was thin with only 14bn Hong Kong dollars' ($1.8bn) worth of shares changing hands after local markets reopened following the lunar New Year holidays. China's markets remain closed and will reopen on 15 February.
Charles Li the chief executive of the Hong Kong Stock exchange said: 'There is very little good news and continuous bad news and this is a test of market confidence.'
On a price-performance basis Hong Kong's shares have held up relatively better than their mainland counterparts so far this year but bloody clashes between street vendors and police over the long break stirred concerns about social stability in the former British colony.
Property shares also came under pressure after data showed last week that Hong Kong property transactions fell 12% in 2015 underscoring fears about an economic slowdown in the Asian financial center as it faces cooling activity in China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.