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Hong Kong stocks fall as rising Covid-19 infections, US sanctions weigh on sentiment
- Hang Seng Index fell 1.2 per cent, while Shanghai Composite retreated 0.8 per cent
- Anta Sports, Budweiser Brewing Company APAC and Meituan, which were added to the Hang Seng Index on Monday, all ended the day lower
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Hong Kong stocks fell as growing concerns over local coronavirus infections and US sanctions on Chinese companies weighed on market sentiment despite optimism on the vaccine front.
The Hang Seng Index declined 1.2 per cent to 26,506.85 on Monday, after ending the previous week with a 0.2 per cent loss.
The Shanghai Composite shed 0.8 per cent, after rising for three continuous weeks.
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“Concerns about the intensifying coronavirus situation in Hong Kong, as well as prospects about the city’s economic recovery and growing budget deficit, has added pressure to market sentiment,” said Stanley Chan, director of research at Emperor Securities. “The US has also continued to sanction Chinese companies, and this has further dented market sentiment.”
Hong Kong medical experts warned of a Christmas Covid-19 spike as cases in the city showed no signs of easing over the weekend. Professor Yuen Kwok-yung, a microbiologist at the University of Hong Kong, who also advises the government on the health crisis, warned the city must remain vigilant against a possible new wave as some 20,000 Hongkongers return home for the holidays.
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