Hong Kong Market falls on Fed taper talks

Hong Kong stock market finished session lower on Thursday, 20 May 2021, as risk-off sentiment fueled on concerns about policy tightening after minutes from the last Federal Reserve policy meeting hinted at the possible tapering of asset sales if the U.S. economic recovery continues apace. Meanwhile, sentiments was also dented after Beijing's warning on Tuesday against speculative crypto trading, and its decision to ban financial institutions and payment companies from providing services related to cryptocurrency transactions.

At closing bell, the benchmark Hang Seng Index fell 0.5%, or 143.52 points, to 28,450.29. The Hang Seng China Enterprises Index dropped 0.11%, or 11.50 points, to 10,642.80.

The sub-index of the Hang Seng tracking commerce & industry sector rose 0.13% and the utilities sector rose 0.13%, while the finance sector fell 1.33% and the properties sector shed 0.22%.

Oil producers were loss leaders, with PetroChina and Sinopec tumbling by 4.6% and 3.3% respectively. Casino operators also weakened amid concerns about the worsening pandemic. Galaxy Entertainment dropped 2.1% while Sands China fell 1%.

Meitu, a Chinese beauty app maker, fell 1% to HK$1.98, as cryptocurrency supporters continued to be whipsawed by wild swings in digital coins amid warning from China.

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