AP – Hong Kong’s share benchmark has fallen more than nine per cent as traders dumped shares following recent sharp gains.
The Hang Seng index lost 9.4 per cent to close at 20,926.79. Technology and China-related shares led the decline.
Hong Kong shares had logged strong gains over the past week while markets in mainland China were closed for a weeklong holiday. The advances were fuelled by recent announcements of plans by Beijing for more support for the economy and for financial markets.
Shares soared yesterday in Shanghai as Chinese markets reopened after a weeklong holiday but then gave up a chunk of their initial gains as the details of Beijing’s plans to revive the world’s second-largest economy appeared to fall flat.
The Shanghai Composite index was up 3.1 per cent at 3,438.16, though in Shenzhen, Japan’s smaller market, the main index gained 6.2 per cent.
Hong Kong’s Hang Seng sank 7.6 per cent to 21,336.70 as traders, apparently underwhelmed by the update from Beijing, sold to lock in profits from recent gains. The Shanghai benchmark initially gained 10 per cent but fell back as officials of China’s main economic planning agency briefed reporters about a slew of policies announced earlier that were meant to address various problems such as a protracted slump in the property market.
“China’s markets rally has hit a wall, leaving investors deflated. The reopening surge from the week-long holiday barely had time to gather steam before fizzling out,” Stephen Innes of SPI Asset Management said.
