Hong Kong Market falls on profit booking

Hong Kong stock market finished lower for the first time in seven market days on Wednesday, 17 November 2021, as investors opted to lock in gains on concerns about an earlier than expected rate hike by the U.S. Federal Reserve. However, market losses capped somewhat on an amicable meeting between U.S. and Chinese leaders and reports that Beijing plans to let property companies resume issuance of asset-backed securities.

At closing bell, the benchmark Hang Seng Index dropped 0.25%, or 63.70 points, to 25,650.08. The Hang Seng China Enterprises Index dropped 0.35%, or 32.60 points, to 9,193.21. The Hang Seng gauge had rallied 3.8% in the preceding six days on policy easing bets and optimism surrounding US-China ties.

 

The Fed will begin reducing the pace of its bond purchases later this month, with many market participants expecting the U.S. central bank to hike interest rates late 2022. Monetary policy tightening in the United States could change global fund flow into dollar-denominated assets to increase capital outflow pressure from China and other emerging markets.

Shares of oil companies tumbled after reports that the US has asked China to release its oil reserves as part of discussions on economic cooperation.

Shares of Macau casino operators took a hit as uncertainty plagued the extension and status of their gambling concessions. Galaxy Entertainment and Sands China each declined 1.3%.

Powered by Capital Market - Live News