Hong Kong stocks fall as threat of US rate hike haunts market, troubled Evergrande surges after trade suspension lifted
- The yields on US Treasuries soared as the rhetoric of Fed officials pointed towards further rate hikes
- Troubled property developer China Evergrande jumped as much as 42 per cent to HK$0.46 per share as it resumed trading on Tuesday
Tencent Holdings slid 1.8 per cent to HK$300.60, Alibaba Group lost 2.9 per cent to HK$83.10 and e-commerce platform JD.com retreated 3.2 per cent to HK$111.40. Local property company New World Development sank 5.2 per cent to HK$14.44, Henderson Land dropped 5.1 per cent to HK$19.60 while Sun Hung Kai Properties lost 3 per cent to HK$81.30.
Rising borrowing costs continued to weigh on sentiment. The yield on the 10-year US Treasury, a benchmark for corporate bonds, rose to 4.699 per cent during Asian trading hours to hit the highest level since 2007, while the US dollar index rose to its highest level since November.
“Stay neutral on China,” said Yan Wang, chief emerging markets and China strategist at Alpine Macro, in a note on Tuesday. A cyclical upturn might not come any time soon as signs of growth have remained depressed while Beijing’s policy stimulus efforts have been largely underwhelming.