An city view of high-rise buildings at nightfall as seen from Hong Kong’s Victoria Peak.
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Hong Kong’s Hang Seng Index dropped greater than 3% Tuesday, dragged by its real estate and energy sectors.
The benchmark index’s lack of over 500 factors is a major decline, Everbright Securities’ Kenny Ng advised CNBC through e-mail.
“On one hand, this was pushed by profit-taking following a 400-point rise final Friday,” the securities strategist defined. “Additionally, the US dollar index has remained comparatively sturdy, exerting downward strain on the Hong Kong inventory market.”
The index was final buying and selling down 3.16% after getting back from a vacation on Monday.
Ng highlighted how property shares have been among the many largest decliners Tuesday, given the high-interest atmosphere.
Hang Seng Index drops
Hong Kong listed property shares have been firmly within the purple. Country Garden Holdings plunged 7.67%, main losses within the sector, whereas Longfor Group Holdings misplaced 4.82%. New World Development shed 6.69%, and Henderson Land Development traded 6.15% decrease.
“Coupled with the comparatively sluggish mainland Chinese real estate market, it’s anticipated that this sector will proceed to face downward strain within the brief time period,” Ng added.
China’s property market has struggled with faltering shopper confidence, as property giants Evergrande and Country Garden have been mired in debt issues.
Separately, beleaguered Chinese property big Evergrande resumed buying and selling in Hong Kong. Shares have been unstable since resuming commerce in late August following a 17-month suspension. The inventory rose 22% in early commerce. The agency’s EV unit additionally halted trading Tuesday.
Energy shares additionally posted losses, with PetroChina dropping 5.93% and China Petroleum & Chemical Corp dipping 5.14%.