Hong Kong Market tumbles to two-week low

Hong Kong share market finished session steep lower on Thursday, 24 February 2022, joining global market selloff, after Russian forces invaded Ukraine in the biggest attack in Europe since World War Two. Meanwhile, fears about possible aggressive tightening by the Federal Reserve to combat inflation also dented investors' appetite for riskier assets.

At closing bell, the benchmark Hang Seng Index stumbled 3.21%, or 758.72 points, to 22,901.56. The Hang Seng China Enterprises Index dropped 3.44%, or 286.32 points, to 8,030.90.

Russian forces invaded Ukraine by land, air and sea, confirming the worst fears of the West with the biggest attack by one state against another in Europe since World War Two, sending global markets into a tailspin.

The Ukraine government said Moscow had launched a full-scale invasion, with Russian troops landing in the Black Sea port of Odessa and in Mariupol, and as Ukrainian military command centres in several cities came under missile attacks.

Investors expect defence companies to benefit from rising geopolitical tensions, with European and U.S. defence contractors well positioned, especially if NATO member states boost spending.

Among blue chips, Alibaba Group Holding shares tanked 6.7 per cent to a record-low HK$104.90 before its earnings report later on on Thursday. Tencent Holdings and Meituan declined by more than 3.6 per cent. Hong Kong Exchanges and Clearing slipped 5.4 per cent to a one-year low as earnings in 2021 trailed consensus.

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