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Hong Kong Market extends losses to sixth day

Capital Market 

Hong Kong stock market finished down for sixth straight session on Tuesday, 02 November 2021, as risk aversion selloff continued amid growing concerns about the China's economic growth and property debt defaults worries. At closing bell, the benchmark Hang Seng Index fell 0.22%, or 54.65 points, to 25,099.67. The Hang Seng China Enterprises Index dropped 0.4%, or 35.49 points, to 8,863.83.

Selloff in the city bourses continued amid growing concerns about the world second largest economy growth after fresh batch of economic data painted a mixed picture of china's manufacturing and service activity.

Also weighing down sentiments was fears of spreading financial contagion after Central China Real Estate, Yango Group make last-ditch efforts to avoid bond defaults as Beijing piles on the pressure to ensure embattled home builders repay their debts on time.

Yango Group offered to exchange some U.

S. dollar bonds for new notes personally guaranteed by its chairman to avoid defaulting on upcoming debt payments. Fitch Ratings downgraded the firm's rating "C" from "B," saying that it considered the offer a distressed debt exchange. Moody's Investors Service earlier cut Yango's corporate family rating to Caa2 from B2, citing liquidity risk.

Shares of developers declined, with China Evergrande down 2.9%, amid worries about widening defaults after Yango Group sought to delay repayment by up to eight months on US$500 million worth of bonds maturing in the first quarter next year. Citic slid 6.4% while China Merchants Bank lost 5.8% and developer Longfor Group declined 5.6%

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, November 02 2021. 17:00 IST