Hong Kong shares end lower as virus surge hits risk appetite

Reuters2021-07-20
  • Hang Seng index ends down 0.84% China Enterprises index HSCE falls 0.94% Property sector down 1.1%; financial sector falls 0.8%.

July 20 (Reuters) - Hong Kong shares closed lower on Tuesday, as property shares fell on worries around developer Evergrande, while fears of a hit to global growth from higher Delta variant coronavirus cases hurt sentiment.

The Hang Seng index ended down 230.53 points or 0.84% at 27,259.25. The Hang Seng China Enterprises index fell 0.94% to 9,864.57.

A sub-index of the Hang Seng tracking energy shares dipped 2.3%, while the IT sector fell 0.91%, the financial sector ended 0.8% lower and the property sector dropped 1.08%.

The property sector was hit by concerns about cashflow at China Evergrande Group , which slumped 10.23% to be the biggest H-shares percentage decliner. The company's bonds also tumbled.

Worries over Evergrande's financial health persisted even after a local housing authority removed an earlier sales suspension at two real estate projects.

Adding to indications that Chinese policymakers are avoiding a new round of easing, China kept its benchmark lending rate for corporate and household loans unchanged at its July fixing on Tuesday, despite growing expectations for a cut.

The top gainer on the Hang Seng was Haidilao International Holding Ltd , which gained 3.46%, while the biggest loser was Alibaba Health Information Technology Ltd , which fell 7.39%.

China's main Shanghai Composite index closed down 0.07% at 3,536.79 points, while the blue-chip CSI300 index ended down 0.09%.

Around the region, MSCI's Asia ex-Japan stock index was weaker by 0.6%, while Japan's Nikkei index closed down 0.96%.

The yuan was quoted at 6.4821 per U.S. dollar at 0818 GMT, 0.13% firmer than the previous close of 6.4905.

(Reporting by Andrew Galbraith; editing by Uttaresh.V)

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Comments

  • daruma
    2021-07-20
    daruma
    Oh no!
  • Bodoh
    2021-07-20
    Bodoh
    Been surging past 2 weeks in ASEAN, Australia n Japan SthKorea… you just heard it today?!
  • ASCNMN
    2021-07-20
    ASCNMN
    Ok
  • Glades
    2021-07-20
    Glades
    Like pls
  • WwwQY
    2021-07-20
    WwwQY
    Time to accumulate. 
  • SaberNoTooth
    2021-07-20
    SaberNoTooth
    opportunity for us ? 
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