HK stocks hit near 11-year low after Fed rate hike, bargain hunting caps China losses

Hong Kong stocks hit a near 11-year low on Thursday, as another big U.S. interest rate hike dampened risk appetite, but bargain hunting helped Chinese shares limit losses. ** Stocks across growth and other vulnerable sectors fell after Hong Kong's central bank hiked rate in line with the Fed. ** The Hang Seng Tech Index lost 2.1% to hit a six-month low.


Reuters | Shanghai | Updated: 22-09-2022 10:51 IST | Created: 22-09-2022 10:34 IST
HK stocks hit near 11-year low after Fed rate hike, bargain hunting caps China losses
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Hong Kong stocks hit a near 11-year low on Thursday, as another big U.S. interest rate hike dampened risk appetite, but bargain hunting helped Chinese shares limit losses. ** Hong Kong equity benchmark Hang Seng dropped nearly 2% in morning trading to 18,097.58, after touching its lowest level since December, 2011.

** In mainland China, the bluechip CSI300 Index fell 0.9% to 3,870.43, while the the Shanghai Composite Index dipped 0.3% to 3,107.63. ** Asian markets broadly fell, trailing Wall Street, after the U.S. Federal Reserve delivered another 75-basis-point interest rate rise.

** "In the shorter term, risk assets are likely to underperform as the increased risk of recession is more fully discounted by markets," wrote David Chao, global market strategist, Asia Pacific (ex-Japan), Invesco. ** Stocks across growth and other vulnerable sectors fell after Hong Kong's central bank hiked rate in line with the Fed.

** The Hang Seng Tech Index lost 2.1% to hit a six-month low. Electric car makers including Xpeng Inc , Nio and Li Auto also fell sharply. ** Property shares lost 1.4%,while financial shares declined 2%.

** China shares were aided by signs of bargain hunting ahead of next month's politically key Communist Party Congress. ** Chinese equity exchange-traded funds (ETFs) posted a net inflow of roughly 33 billion yuan ($4.68 billion) over the past month, the official Securities Times reported.

** Investors poured money into mainly blue-chip ETFs such as ChinaAMC China 50 ETF and Haitai-PB CSI 300 ETF , the report said. ** Bucking the trend, Shanghai's science & innovation board STAR Market and Shenzhen's star-up board ChiNext rose ahead of the imminent launch of six tech-focused ETFs that will likely channel fresh money into the tech sector.

** An index tracking China's defence sector jumped nearly 3% after Moscow's first wartime mobilisation since World War Two heightened geopolitical tensions.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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