Hong Kong Market falls on COVID unrest in China

28 Nov 2022 , 05:01 PM

Hong Kong share market finished session lower for second straight session on Monday, 28 November 2022, as risk aversion selloff triggered amid worries about protests against strict COVID-19 curbs in the worlds second-largest economy. Also, a U.S. crackdown on Chinese tech giants citing national security concerns weighed on shares of tech firms. At closing bell, the benchmark Hang Seng Index fell 275.64 points, or 1.57%, to 17,297.94. The Hang Seng China Enterprises Index dropped 98.72 points, or 1.65%, to 5,872.38. Market risk aversion selloff triggered as the social unrest in China has fuelled concerns over the social instability in the country and that the road to reopening could be a bumpy one. The COVID protests have flared across China and spread to several cities in the wake of a deadly fire in Urumqi in the countrys far west, with hundreds of demonstrators and police clashing in Shanghai on Sunday night. Worries over the unprecedented wave of civil disobedience in a country where in-person protests are rare, the rising COVID cases, as well as how Beijing will react to the situation kept investors on edge. China reported 40,052 daily new cases on Sunday, topping 40,000 for the first time, according to the health ministry, prompting widespread lockdowns and other curbs on movement and business across the country. Investors shrugged off the central banks announcement on Friday on cutting banks required reserve ratio (RRR) to aid a struggling economy. On Friday, the Peoples Bank of China (PBOC), the nations central bank, said it would cut the reserve requirement ratio (RRR) for banks by 25 basis points (bps), effective from Dec. 5. Among blue chips, Alibaba Group Holding tumbled 3.4% to HK$72.20 and Tencent Holdings dropped 1.1% to HK$270 while JD.com crashed 4.3% to HK$190.10. Macau casino stocks gained after the citys six existing operators won new 10-year concessions. Sands China surged 8.4% to HK$18.80 while Galaxy Entertainment climbed 0.5% to HK$43.05. Meituan added 2.1% to HK$139.40.Powered by Capital Market – Live News