Hong Kong shares knocked lower, led by property stocks after HKMA raises interest rate
The Hang Seng Index closed 1.2 per cent lower on Thursday, led by declines in property and energy
Hong Kong stocks closed lower on Thursday with the property sector leading losses after the city’s de facto central bank followed a US decision and lifted the base interest rate. Mainland markets closed with mixed but slight changes.
Hong Kong’s benchmark Hang Seng Index closed at 25,565.34, representing a drop of 1.2 per cent, or 310.56 points.
The Hang Seng China Enterprises Index of Chinese companies trading in the city shed 1.6 per cent, or 168.76 points, to close at 10,346.15.
Daily total market turnover was HK$71.77 billion, down from Wednesday’s HK$77.13 billion.
The Hong Kong Monetary Authority (HKMA) announced on Thursday morning that the base rate was adjusted upward by 25 basis points to 1.50 per cent with immediate effect, following the US Federal Reserve’s overnight move.
“The Hong Kong market has been cautious today following the announcement of the Fed’s surprising timetable for balance sheet normalisation,” Kenny Tang Sing-hing, chief executive of Junyang Securities, said.
After the Fed’s post-meeting press conference, a majority of Wall Street banks believe the central bank will begin reducing its US$4.5 trillion bond portfolio in September, a shift from expectations earlier in June when a majority believed the winding down would begin in December.