Hong Kong Hang Seng tumbles 1.3%

Hong Kong share market finished session steep lower on Wednesday, 12 June 2024, following the mixed cues from Wall Street overnight amid cautious ahead of the US Labor Department report on consumer price inflation for May and the Federal Reserve's monetary policy meeting outcome due later on Wednesday. Also denting sentiment was China inflation data that sparked worries about domestic demand in the worlds second biggest economy. Furthermore, sentiments weighed down after reports that the Biden administration is considering further restrictions on China's access to chip technology used for artificial intelligence.

At closing bell, the benchmark Hang Seng Index stumbled 238.50 points, or 1.31%, to 17,937.84. The Hang Seng China Enterprises Index dropped 92.70 points, or 1.44%, to 6,359.36.

The sub-index of the Hang Seng tracking properties sector led the retreat by falling 2.42%. The finance sector declined 1.09% and the utilities sector ended 1.29% lower. The commerce & industry sector lost 1.35%.

Shares pf property developers declined ahead of the US Federal Reserves rate-setting meeting as concerns remained that the interest-rate environment would keep the cost of home purchases elevated. Hong Kongs monetary policy moves in lock-step with the United States as the citys currency is pegged to the US dollar. New World Development tumbled 3.5% to HK$7.78 and Sun Hung Kai Properties fell 1.6% to HK$71.60.

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