Mon. May 20th, 2024

An city view of high-rise buildings at nightfall as seen from Hong Kong’s Victoria Peak.

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Hong Kong’s Dangle Seng Index dropped greater than 3% Tuesday, dragged by its actual property and power sectors.

The benchmark index’s lack of over 500 factors is a big decline, Everbright Securities’ Kenny Ng informed CNBC through e-mail.

“On one hand, this was pushed by profit-taking following a 400-point rise final Friday,” the securities strategist defined. “Moreover, the US greenback 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 had been among the many largest decliners Tuesday, given the high-interest setting.

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Dangle Seng Index drops

Hong Kong listed property shares had been firmly within the purple. Nation Backyard Holdings plunged 7.67%, main losses within the sector, whereas Longfor Group Holdings misplaced 4.82%. New World Improvement shed 6.69%, and Henderson Land Improvement traded 6.15% decrease.

“Coupled with the comparatively sluggish mainland Chinese language actual property 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 client confidence, as property giants Evergrande and Nation Backyard had been mired in debt issues. 

Individually, beleaguered Chinese language 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 buying and selling Tuesday.

Vitality shares additionally posted losses, with PetroChina shedding 5.93% and China Petroleum & Chemical Corp dipping 5.14%.

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By Admin

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