Hong Kong stocks slump with global sell-off as taper tantrum triggers market rout, mainland funds trim bets again
- Stocks crashed across the region as traders began to price in interest-rate increase amid policy tightening risks, inflation concerns
- WuXi Biologics, Galaxy and Meituan led losses, mainland investors turned net sellers of Hong Kong stocks again
Hong Kong stocks tumbled by the most in nine months after a sell-off in US government bonds. Concerns are growing that central banks will unwind accommodative monetary policies that have fed an unprecedented rally in equities worldwide.
The Hang Seng Index sank 3.4 per cent to 29,043.19 at the close of Friday trading as 50 or 52 members suffered losses and the top 15 losers fell by more than 4 per cent each. WuXi Biologics, Macau casino operator Galaxy Entertainment and Meituan retreated at least 5.8 per cent as the worst performers.
The decline marked the biggest one-day setback since May 22 when the benchmark crashed 5.6 per cent shortly after China decided to bypass local legislature by writing a security law into the city’s charter to quell dissent in the city. The local currency traded near 7.7566 per US dollar, the weakest since late March.
The Hang Seng Index completed a 5.2 per cent loss for the week, the most since the week ended March 13 when it slid 8.1 per cent. The Hang Seng Tech Index plunged 15.2 per cent, the worst week since its inception in late July. NetEase crashed 8.9 per cent after an earnings miss. In China, the Shanghai Composite Index slid 5.1 per cent for the week, the worst in 12 months.