HK stocks hit near 11-year low after Fed rate hike, bargain hunting caps China losses


  • Markets
  • Thursday, 22 Sep 2022

People walk past the Exchange Square in Hong Kong — AFP

SHANGHAI: Hong Kong stocks hit a near 11-year low on Thursday, as another big U.S. interest rate hike dampened risk appetite, but bargain hunting helped Chinese shares limit losses.

Hong Kong equity benchmark Hang Seng dropped nearly 2% in morning trading to 18,097.58, after touching its lowest level since December, 2011.

In mainland China, the bluechip CSI 300 Index fell 0.9% to 3,870.43, while the the Shanghai Composite Index dipped 0.3% to 3,107.63.

Asian markets broadly fell, trailing Wall Street, after the U.S. Federal Reserve delivered another 75-basis-point interest rate rise.

"In the shorter term, risk assets are likely to underperform as the increased risk of recession is more fully discounted by markets," wrote David Chao, global market strategist, Asia Pacific (ex-Japan), Invesco.

Stocks across growth and other vulnerable sectors fell after Hong Kong's central bank hiked rate in line with the Fed.

The Hang Seng Tech Index lost 2.1% to hit a six-month low. Electric car makers including Xpeng Inc, Nio and Li Auto also fell sharply.

Property shares lost 1.4%,while financial shares declined 2%.

China shares were aided by signs of bargain hunting ahead of next month's politically key Communist Party Congress.

Chinese equity exchange-traded funds (ETFs) posted a net inflow of roughly 33 billion yuan ($4.68 billion) over the past month, the official Securities Times reported.

Investors poured money into mainly blue-chip ETFs such as ChinaAMC China 50 ETF and Haitai-PB CSI 300 ETF , the report said.

Bucking the trend, Shanghai's science & innovation board STAR Market and Shenzhen's star-up board ChiNext rose ahead of the imminent launch of six tech-focused ETFs that will likely channel fresh money into the tech sector.

An index tracking China's defence sector jumped nearly 3% after Moscow's first wartime mobilisation since World War Two heightened geopolitical tensions. - Reuters

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Hong Kong , Hang Seng , interest rate , CSI 300

   

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