Hong Kong Market tumbles on Fed's dismal economic outlook

The Hong Kong stock market finished lower second straight session on Thursday, 11 June 2020, in line with a global retreat, after gloomy economic outlook from the US Federal Reserve crushed hopes for a swift recovery from the coronavirus-induced slump. Meanwhile, selloff pressure intensified after the Chinese government said it would impose a sweeping and controversial national security law on the city and on concern about US-China tensions.

At closing bell, the benchmark Hang Seng Index declined 2.27%, or 569.58 points, to 24,480.15. The Hang Seng China Enterprises Index dropped 1.96%, or 198.88 points, to 9,944.60.

Macau casinos and property stocks suffered big tumbles. Henderson Land Development fell 3.1%, while Sun Hung Kai Properties dropped 2.9%, as investors remain cautious on the sector with added uncertainty about how the new national security law will impact Hong Kong.

Galaxy Entertainment tumbled 5%, while Sands China dropped 4.2%. The declines came even as Galaxy Chairman Lui Che Woo expressed hope on Wednesday that coronavirus-related travel restrictions that have devastated local casinos could be eased within a month.

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