Hong Kong Market stumbles 3.3%

Hong Kong stock market closed steep lower on Monday, 20 September 2021, amid fears of a wider crackdown on Hong Kong reality firms after Evergrande' plummeted to lowest in over 11 years ahead of its bond payments deadline later this week.

At closing bell, the benchmark Hang Seng Index stumbled 3.3%, or 821.62 points, to 24,099.14. The Hang Seng China Enterprises Index retreated 3.38%, or 301.92 points, to 8,638.55.

Property developer China Evergrande Group plummeted 10.2%, the weakest level since May 2010, as investors take a dim view of its business prospects with a fast approaching deadline for payment obligations this week. Evergrande has been scrambling to raise funds to pay its many lenders, suppliers and investors, with regulators warning that its $US305 billion of liabilities could spark broader risks to the country's financial system if not stabilised.

Agricultural Bank of China lost 4.1% after reports that China's number three lender has made loan loss provisions on its exposure to beleaguered China Evergrande.

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