Hong Kong stocks fall as HKMA’s currency market intervention fuels fears of further capital outflow
- Hang Seng Index closes 2.2 per cent lower, reversing gains made a day earlier
- Tech giants Alibaba and JD.com and property firms Country Garden and China Overseas Land weigh on the market
Hong Kong stocks fell to their lowest in two months, as the city’s monetary authority intervened to defend the local currency for the first time since 2019, fanning concerns of further liquidity outflows.
The Hang Seng Index declined 2.2 per cent to 19,380.34 at the close of Thursday trading, extending losses made earlier in the day, after accumulating gains of 1 per cent on Wednesday. The Tech Index retreated 3.8 per cent, while the Shanghai Composite Index lost 0.1 per cent.
Alibaba Group Holding, the owner of this newspaper, slumped 6.6 per cent to HK$80. JD.com lost 7.8 per cent to HK$192, while Xiaomi weakened 5.8 per cent to HK$10.36. Country Garden Holdings slumped 6.9 per cent while China Overseas Land retreated 4.8 per cent.
“[The intervention] led to negative sentiments as some think that money is leaving Hong Kong [as] liquidity is important for stocks markets,” said Banny Lam, managing director and head of research at CEB International Investment in Hong Kong.