Hang Seng Slumps To Sub-17,000 Finish

Hong Kong stocks sank again on Tuesday as traders remained spooked by central bank interest rate hikes to tame inflation, with many fearing they will send major economies into recession.

The Hang Seng Index sank 2.23 percent to 16,832 – ending below 17,000 for the first time since 2011. Meanwhile the Shanghai Composite Index added 0.19 percent to 2,980, while the Shenzhen Composite Index on China's second exchange edged up 0.61 percent to 1,882.

Speaking to RTHK, Selina Sia, head of Greater China equity research at Credit Suisse Wealth Management, said US interest rates were likely to continue to have an impact on the local bourse.

"I think the situation is going to remain quite weak for several reasons; one is that the RMB/CNY against the US dollar is likely going to stay weak, if not weaken, when the United States continues to raise rates," she said.

Sia added that sentiment was also hurt by renewed concerns about possible Covid lockdowns on the mainland after the official People's Daily newspaper reiterated that Beijing would continue its zero-Covid approach, as well as continuing Sino-US tensions.

Meanwhile Moody's says it's pulled its ratings for debt-ladden mainland property developers China Evergrande and Kaisa. The ratings agency said it had insufficient information to maintain its assessment on the companies. It added that it's also removed its ratings on Evergrande's units, including Hengda Real Estate Group Company. (RTHK/AFP/Reuters)

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