Tags: Hong Kong | stocks | correction | energy

Hong Kong Stocks Enter Correction as Energy Firms, Insurers Fall

Hong Kong Stocks Enter Correction as Energy Firms, Insurers Fall

(Dreamstime)

Thursday, 22 December 2016 08:18 AM

Hong Kong stocks fell, with the benchmark index entering a correction, as energy producers and financial companies retreated amid dwindling turnover.

The Hang Seng Index slid 0.8 percent at the close. The gauge has slumped more than 10 percent since its Sept. 9 high as rising funding costs in Hong Kong and the mainland weighed on property developers and a weakening yuan turned investors off Chinese assets. The value of shares traded on the city’s stock market dropped to a four-month low on Wednesday before the start of holidays at the end of the week. The Shanghai Composite Index rose 0.1 percent.

"The selloff today reflects investors’ lack of confidence in the short-term performance of the China stock market," said Kenny Wen, a wealth management strategist at Sun Hung Kai Financial Ltd. in Hong Kong. "Volume is thin, not just due to the holiday season, but also because investors think there will be further downside in Hong Kong stocks and they are choosing to stay on the sidelines."

Chinese equity gauges are among the world’s biggest losers this month as surging money-market rates sparked turmoil in the nation’s bond market, while the weakening currency increased pressure on capital outflows. That’s capping a dismal year for mainland stock investors, with the Shanghai benchmark set for its biggest annual decline since 2011.

 

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Hong Kong stocks fell, with the benchmark index entering a correction, as energy producers and financial companies retreated amid dwindling turnover. The Hang Seng Index slid 0.8 percent at the close.
Hong Kong, stocks, correction, energy
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2016-18-22
Thursday, 22 December 2016 08:18 AM
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