Hong Kong Stocks tumble on US-China tensions

The Hong Kong stock market finished session steep lower on Wednesday, 22 July 2020, as profit booking triggered on following the previous day's rally and a record jump in infections in the city. Meanwhile, selloff pressure intensified late afternoon on heightened US-China tensions after the US ordered China's consulate in the city of Houston to close within 72 hours.

At closing bell, the benchmark Hang Seng Index stumbled 2.25%, or 577.72 points, to 25,057.94. The Hang Seng China Enterprises Index dropped 1.93%, or 201.91 points, to 10,243.51. Of the 50 members of the benchmark, 46 posted losses.

The Hang Seng Index, which had gains in the early session before turning down some before and after the lunch break, began sliding hard on the news over the consulate. Investors are worried that the China and US relationship may get worse after news that the US ordered China's consulate in the city of Houston to close within 72 hours. In quickly moving news, the Chinese Foreign Ministry said the United States had demanded Beijing close its consulate in the Texas city, calling the move unprecedented escalation and threatening retaliation. It was the latest instance of friction between the world's two largest economies on everything from trade to the South China Sea and Beijing's tightening grip over Hong Kong.

The latest and most serious outbreak of coronavirus is also weighing on sentiment. The third wave of coronavirus infections killed two more elderly patients as the city confirmed another 61 confirmed cases on Tuesday.

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