Hong Kong Market joins global selloff

Hong Kong stock market finished session deep in the red on Thursday, 28 January 2021, joining the sell-off in global markets, on tracking negative lead from Wall Street overnight after the Federal Reserve flagged a potential slowdown in the economic recovery.

At closing bell, the benchmark Hang Seng Index declined 2.55%, or 746.76 points, to 28,550.77. The Hang Seng China Enterprises Index dropped 2.72%, or 317.21 points, to 11,334.03.

U.S. stocks suffered their biggest single-day percentage drop in three months on Wednesday, with concerns about the impact of new, more contagious coronavirus strains, vaccine delays and stimulus uncertainty weighing on the markets.

Sentiments were also dampened by the US Federal Reserve, which left borrowing costs unchanged at its policy meeting, without promising any fresh monetary stimulus to counter the economic slump caused by the raging Covid-19 pandemic. The US economy was still a long way from full recovery and short of the inflation and job goals set by policymakers, the Fed Reserve chairman Jerome Powell said.

Declines were seen in 42 of the 52 constituent stocks on the Hang Seng Index, led by the 7.6% drop in Techtronic Industries and the 6.9% fall in Geely Automobile Holdings. Tencent Holdings fell 2.9% to HK$681.

Cathay Pacific Airways , the city's flagship carrier, tumbled 9.7% to HK$5.95 after it announced a plan to raise more funds by selling HK$6.74 billion convertible bonds to replenish its capital.

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