Hong Kong Market falls ahead of Fed decision

27 Jul 2022 , 05:57 PM

Hong Kong share market finished session lower on Wednesday, 27 July 2022, as risk sentiments dampaned after the International Monetary Fund cut its outlook for global economic growth in 2022 by 0.4 percentage point from its April forecast due to Russias war in Ukraine and Chinas COVID-19 lockdowns. Also, most investors sat on the sidelines ahead of the release later in the day of the outcome of a U.S. Federal Reserve policy setting meeting and the Politburo meeting later this week, at which top decision-makers gather to discuss their next policy moves. At closing bell, the benchmark Hang Seng Index declined by 235.84 points, or 1.13%, to 20,670.04. The Hang Seng China Enterprises Index was down 93.72 points, or 1.3%, to 7,091.47. COVID-19 uncertainties continued to weigh on Chinas economic recovery. The major city of Wuhan temporarily shut some businesses and public transport in a district with almost a million people on Wednesday. Investors continued to be worried about the property sector, after Country Garden Holdings Co Ltd said on Wednesday it planned to raise HK$2.83 billion from a share sale, raising proceeds for refinancing offshore debt, general working capital and future development purposes. Market participants are also eyeing a potential meeting between Chinese and U.S. leaders. Joe Biden and Xi Jinping are expected to talk on Thursday, amid tensions over Taiwan and Russias invasion of Ukraine. Alibaba Group Holding slipped 3.3% to HK$101, losing a big chunk of Tuesdays 4.8% advance on the back of its bid for a primary listing status in Hong Kong. Country Garden tumbled 15.1% to HK$3.16. Chinas biggest developer by sales on Wednesday proposed to sell 870 million new shares at HK$3.25 each to raise HK$2.83 billion (US$360 million) to help repay offshore debt. Longfor Group sank 4.4% to HK$28.15. Powered by Capital Market – Live News