moomoo ID:NaN
Log Out
Log in to access Online Inquiry

Hong Kong Stocks Sink to Near 11-Year Low; Shunfeng Retreats 5%

MT Newswires ·  {{timeTz}}

05:15 AM EDT, 09/22/2022 (MT Newswires) -- Hong Kong stocks tumbled to their lowest in almost 11 years on Thursday, as investors dumped shares on fears that more interest-rate hikes by major central banks around the world will push the global economy into a recession.

The Hang Seng Index slumped 1.6%, or 296.67 points, to finish the session at 18,147.95, a closing level not seen since December 2011. The Hang Seng China Enterprises Index retreated 1.1%, or 71.26 points, to 6,195.90.

At the conclusion of its September policy meeting, the US central bank announced another 75 basis-point interest rate increase to tamp down soaring inflation.

Three 75-basis-point rate hikes in a row is unprecedented. The Fed raised its target interest-rate range to between 3% and 3.25%, the highest it has been since the global financial crisis in 2008 and warned of more pain ahead.

"No one knows whether this process will lead to a recession or if so, how significant that recession would be," Fed Chair Jerome Powell told reporters in a press briefing. "The chances of a soft landing are likely to diminish to the extent that policy needs to be more restrictive, or restrictive for longer. Nonetheless, we're committed to getting inflation back down to 2%."

Hong Kong 's de-facto central bank mirrored the tightening and raised its base lending rate by 75 basis points to 3.5% with immediate effect.

As Hong Kong's currency is pegged to a narrow trading band between HK$7.75 and HK$7.85 per US dollar, the linked exchange system means the city raises or cuts borrowing costs in lockstep with rate changes by the Fed.

Higher interest rates in the US will stoke capital outflow from the city, weaken the local dollar and affect exports, Hong Kong Finance Secretary Paul Chan said.

In corporate news, Shunfeng International Clean Energy or SFCE (HKG:1165) fell almost 5% after calling off its planned sale of four solar power plants in China due to failure to meet certain conditions in the disposal agreements.

This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.

Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.
In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).
In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.
In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites https://www.futuau.com and https://www.moomoo.com/au. Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.