Hong Kong stocks fell 5 percent to their lowest level in 13 years on Monday. As investors feared China’s President Xi Jinping’s decision to hand over his key economic position to loyalists who supported his coronavirus-free strategy.
The Hang Seng Index closed down 4.99 percent, or 809.48 points, to 15,401.64 at rest, its weakest level since 2009 during the global financial crisis. Hong Kong stocks fall after China worries.
The Shanghai Composite Index fell 0.89%, or 27.19, to close at 3,011.74, while the Shenzhen Composite on China’s second exchange fell 0.35%, or 6.88, at 1,960.04.
Xi’s decision to unite his leadership with supporters as he holds on to power shows that the government is unlikely to shift from strategy to combat the Covid outbreak with lockdowns and measures taken. other strict.
The policy was blamed for the rapid growth of the world’s second-largest economy. And as data showed on Monday, the economy expanded more than expected in the third quarter. Traders still have an advantage.
Duncan Wrigley of Pantheon Macroeconomics said: “The more centralized the power The greater the risk of over-executing policies by means of above-mentioned directives.
“This happened in a partial lockdown in the second quarter.”
Tech companies are among the hardest hit by the dumps. It has in recent years been hit by Xi’s crackdown on the profitable sector of scythed firms and has caused their valuations to disappear in the billions.
E-commerce giants like Alibaba and JD.com agreed around 10 percent, while Tencent lost more than eight percent. The Hang Seng Technology Index fell 6.7%.
The selloff cast a shadow for a bright start in other Asian markets, where traders were cheered on by Wall Street rally after reports suggested the Federal Reserve could ease its interest rate hike campaign.
“The Hong Kong market is seeing a period of panic selling,” said Dickie Wong of Kingston Securities.
“While China reports macro data that exceeds expectations, The market is in a downtrend. Due to the reshuffle of leaders and tensions between China and the United States continues to hold back confidence and increase uncertainty.”
– Bloomberg News contributed to this story –