Hong Kong shares track overnight Wall Street rout, post biggest drop over 8 months

** The sub-index of the Hang Seng tracking energy shares dipped 2%, while the IT sector dipped 3.02%, the financial sector ended 2.78% lower and the property sector dipped 1.36%. ** Traders and analysts said signs of liquidity tension onshore also piled additional pressure on the Hong Kong shares.

Hong Kong stocks posted their biggest drop in more than eight months on Thursday, pressured by an overnight Wall Street sell-off, while tighter onshore liquidity also dampened market sentiment. ** U.S. stocks suffered their biggest one-day percentage drop in three months on Wednesday, while delays with coronavirus vaccines also served as an excuse to book profits on recent hefty gains.

** At the close of trade, the benchmark Hang Seng index was down 746.76 points or 2.55% at 28,550.77, lowest close since Jan. 14 and the biggest daily drop since May 22. The Hang Seng China Enterprises index fell 2.72% to 11,334.03. ** The sub-index of the Hang Seng tracking energy shares dipped 2%, while the IT sector dipped 3.02%, the financial sector ended 2.78% lower and the property sector dipped 1.36%.

** Traders and analysts said signs of liquidity tension onshore also piled additional pressure on the Hong Kong shares. ** China's short-term money rates climbed for a fourth straight day on Thursday, with some key tenors approaching the higher end of the interest rate corridor, as tight cash conditions persisted and market worries over a switch in authorities' policy stance mounted. ** Around the region, MSCI's Asia ex-Japan stock index was weaker by 1.09%, while Japan's Nikkei index closed down 1.53%. ** At close, China's A-shares were trading at a premium of 36.89% over Hong Kong-listed H-shares.