Hong Kong stocks fall as tech shares drag ahead of Fed rate decision

HONG KONG: Hong Kong stocks fell on Wednesday, with losses in tech shares overshadowing gains in banks, as investors awaited interest-rate decision from the U.S. Federal Reserve, and stayed on the sideline ahead of China's open after holiday.

The Hang Seng Index fell 1.1% to 20,869.52, ending its five winning streak. The Hang Seng China Enterprises Index dropped 1.78% to 7,137.63, marking its biggest daily percentage decline since April 25.

Mainland Chinese markets are closed for a holiday. Trading will resume on Thursday.

DBS revised lower its full-year economy forecasts for Mainland China to 4.8% from 5.3% and Hong Kong's growth to 1.7% from 2.4%, saying China's economic condition remains clouded by renewed COVID outbreak while social distancing measures dents consumption.

The sub-index of the Hang Seng tracking energy shares dipped 0.5%, the IT sector dipped 3.35%, and the Hang Seng Tech Index dropped 3.1%, while the financial sector edged up 0.02% and the property sector climbed 0.33%

The top gainer on the Hang Seng Index was ENN Energy Holdings Ltd, which gained 2.73%, while the biggest loser was Alibaba Health Information Technology, which fell 7.48%.

HSBC Hong Kong shares rose as much as 3.1% after it said it will commence a share repurchase of up to $1 billion and has entered into agreements with Merrill Lynch International to handle the buyback beginning on May 4.

Shares of China's Meituan fell 4.58% and JD Health International plunged 12.97% as their shareholders cut long positions.

Mainland developers trading in Hong Kong slipped 1%. - Reuters