Most sectors in Hong Kong fell, with energy and consumer goods leading the declines. Hong Kong hosted last event in 1998 after its return to the motherland.
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Some foreign investors have found a new and simple way to make money from China’s dysfunctional stock markets – by dispensing with market research and playing “follow the leader” instead.
Meanwhile, the streak of volatility continues to rattle investors in China’s markets, with heavy selling in the last 15 minutes of trading Thursday.
The Shanghai Composite shed 6.2 percent on Tuesday, once again bringing the key index below the 3,800 point mark.
Daily combined turnover on the Shanghai and Shenzhen exchanges has more than halved to less than 700 billion yuan ($109.5 billion) in two months. Earlier this week, some listed firms announced government-held stakes, which lifted shares, though performance across the market has been uneven.
Other measures already in train to combat the fiscal drag include allowing banks to restart lending to provincial financing vehicles after an earlier ban, and expanding the capacity of state-run policy banks to lend for projects such as shantytown redevelopment.
Upbeat existing home sales and regional manufacturing activity data as well as solid labor market data only served to heighten expectations that the central bank will begin raising interest rates next month.
Elsewhere, worries about the timing of a rise in U.S. interest rates, which could crimp growth and profits, drove losses, with Australia’s S&P ASX 200 down 1.7%, Nikkei’s Stock Average down 0.9% and South Korea’s Kospi down 1.3%.
“Today’s weaker-than-expected PMI will add to mounting concerns over Chinese growth”, economists at Capital Economics said in a report.
A rush to safer assets drove gold prices to a near five week-high in Asia trade. Late Wednesday, the IMF’s executive board approved an extension of the current basket of reserve currencies included in its special drawing rights to September 30, 2016.
There are also concerns of fresh capital outflows triggered by a sharply weaker yuan, after Beijing devalued the currency last week, but some analysts expect China to launch policies to ease liquidity and aid the economy.
The yuan recovered to finish roughly flat onshore.
“n”>Aug 20 Hong Kong’s benchmark share index fell for a fifth day and ended at its lowest level in eight months on Thursday, pulled down by sluggish global markets and pessimism over China’s economy.
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Overall trade on the exchange totalled $1.17 billion, with 1.53 billion shares changing hands.
