Hong Kong Market extends losses; Developers lead losses

14 Jul 2022 , 05:35 PM

Hong Kong share market finished lower for fourth straight session on Thursday, 14 July 2022, with shares in realty and financials leading losses amid fears that debt troubles in the property sector will hit lenders as more homebuyers threatened to halt mortgage payments. At closing bell, the benchmark Hang Seng Index fell 46.74 points, or 0.22%, to 20,751.21. The Hang Seng China Enterprises Index was down 19.88 points, or 0.28%, to 7,125.95. Shares of Chinese property developers and bank declined amid fears of deepening credit crunch after homebuyers threatened to stop paying for their purchases in abandoned projects. A growing number of homebuyers have in the past few weeks threatened to stop making mortgage payments if property developers do not resume construction of pre-sold homes. Chinese developers from Fantasia Group to Sunac and Guangzhou R&F Properties have struggled to repay creditors as home sales slumped and Beijings ?three red lines? policy shut weak borrowers from the loan and credit markets at home and abroad, adding to mounting default cases. Country Garden Holdings fell 1.4% to HK$3.62 and Longfor Group tumbled 4.8% to HK$29.85. China Resources Land lost 3.3% to HK$33.95, while China Merchants Bank also tumbled 4% to HK$42. Bucking the trend, tech stocks closed higher, with JD.com advancing 2.7% to HK$244 and Alibaba Group adding 1.2% to HK$108.70. Meituan gained 1.1% to HK$182.50, while BYD appreciated 5.5% to HK$283. Powered by Capital Market – Live News