Hong Kong Market tanks 2.2%

Hong Kong share market finished session significantly lower on Friday, 12 April 2024, pressured by risk-off selling across the board amid concerns about economic growth of worlds second-largest economy after the Chinas exports and its imports dropped more than expected in March.

Official figures showed China's exports dropped 7.5% year-over-year, while its imports fell by 1.9% in March. Total trade in the worlds second-largest economy also slid 5.1% year-on-year to $500.8 billion. Chinas trade surplus shrunk more than expected to $58.55 billion.

Sentiment was also dampened amid concerns that local interest rates may not drop in the coming months. The HKMAs monetary policy tracks the US milieu, and persistent high inflation in America is expected to defer a Federal Reserve rate cut to later this year.

At closing bell, the benchmark Hang Seng Index plummeted 373.34 points, or 2.18%, to 16,721.69. The Hang Seng China Enterprises Index dropped 124.39 points, or 2.07%, to 5,879.58.

Shares of property developers declined on concerns that the property markets woes will linger. Property developer Longfor Group Holdings plunged 8.6% to HK$9.41 and its peer China Overseas Land and Development dropped 4% to HK$11.60.

Chinese sportswear Li Ning sank 4.4% to HK$19 on jitters about weak domestic demand.

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