Hong Kong Market ends lower as rate cut hopes fade

Hong Kong share market finished session deeply in negative territory on Wednesday, 03 April 2024, as risk aversion selloff triggered on tracking broadly negative cues from Wall Street overnight, as strong US economic data sent Treasury yields higher and renewed concerns over the outlook for interest rates. A powerful earthquake in Asia also raised concerns about possible disruptions to the vital chip-making industry, denting sentiment in stock markets.

Market overshadowed upbeat data which showed Chinas services activity growth picked up in March as new business rose at the quickest pace in 3 months.

At closing bell, the benchmark Hang Seng Index declined by 206.42 points, or 1.22%, to 16,725.10. The Hang Seng China Enterprises Index dropped 85.73 points, or 1.44%, to 5,874.99.

 

Shares of banks and property companies, which are sensitive to interest rate changes, were lower. Bank of China (Hong Kong) lost 2.2% to HK$22.45 and Sun Hung Kai Properties declined 2.2% to HK$74.90 and Henderson Land declined 1.3% to HK$22.80.

EV carmakers were also lower. Xiaomi lost 4.4% to HK$15.56, giving up some of Tuesdays 9% gains following the launch of its first electric car. BYD slid 2.7% to HK$197 with the car maker losing its crown as the worlds biggest EV seller to Tesla amid an intense war at home, while peer Li Auto tumbled 5.2% to HK$117.30.

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