Hong Kong Stocks tank as Beijing closes US consulate in Chengdu

The Hong Kong stock market finished session lower on Friday, 24 July 2020, as investor sentiment takes a hit over deteriorated ties between the world's two largest economies further after China told the United States to close its consulate in Chengdu. Beijing's decision was a retaliatory move after Washington abruptly ordered the closure of the Chinese consulate in Houston this week, amid allegations of spying.

At closing bell, the benchmark Hang Seng Index dropped 2.21%, or 557.67 points, to 24,705.33. The Hang Seng China Enterprises Index declined 2.37%, or 244.39 points, to 10,080.86.

In the latest deterioration in Sino-U.S. ties, Beijing vowed to close the U.S. consulate in the southwestern city of Chengdu. Beijing's decision was a retaliatory move after Washington abruptly ordered the closure of the Chinese consulate in Houston this week, amid allegations of spying, highlighting rising tensions between the global superpowers.

China's consul general in Houston said the forced closure of the diplomatic compound by Washington would further damage US-China relations, adding that the US State Department needed to provide the evidence behind its espionage allegations.

New economy stocks broadly fell on profit taking, after traders had piled into the sector on excitement earlier this week.Index heavyweight Tencent dropped 5.2%, Alibaba fell 3.1%, while Meituan Dianping tumbled 4.2%.

Shares of telemedicine players also lower. Alibaba Health Technology plunged 6.7%, while Ping An Good Doctor dropped 5%.

Powered by Capital Market - Live News