Hong Kong stocks slumped on their last trading day of the week as investors reacted to the U.S. Federal Reserve's decision to hold interest rates with the possibility of a single rate hike by the end of 2026.
The Hang Seng Index fell by around 387.35 points, or roughly 1.6%, to end at 23,924.81, while the Hang Seng China Enterprises Index decreased by 167.99 points, or 2.1%, to end at 7,976.04.
Hong Kong markets will be closed Friday on account of a public holiday.
The Federal Reserve kept its monetary policy steady Wednesday, removing the so-called easing bias from its statement, while raising its interest rate expectations through 2028. The central bank's Federal Open Market Committee maintained its interest rate at 3.50% to 3.75%, in line with Wall Street's expectations and marking its fourth consecutive pause.
Fed Chair Kevin Warsh said the central bank would "deliver price stability" and acknowledged inflation has remained above the Fed's 2% target for years.
In the same vein, the Hong Kong Monetary Authority kept its base rate unchanged at 4%.
The authority said the outlook for U.S. interest rates remains uncertain and urged the public to carefully assess and manage interest-rate risks when making property purchases, investment decisions, or borrowing arrangements.
Meanwhile, the city is seeking to raise HK$3 billion through tenders for institutional government bonds to fund infrastructure projects.
In corporate news, three firms filed to go public in Hong Kong.
Among the future debutants, Alebund Pharmaceuticals (HKG:9637) is seeking to raise HK$1.28 billion to fund the clinical development of its drug pipeline, while Crealights Technology (HKG:1191) is targeting HK$1.53 billion to expand its production capacity for optical transceivers.
Meanwhile, Baige Online Digital Technology (HKG:2672) is seeking to raise up to HK$676.2 million to expand its research and development capabilities.
Comments