As a result of the currency crisis, the Hang Seng Index drops even lower to
its lowest point since October 2011.
Demand for riskier assets is declining globally as a result of aggressive rate
increases and a gloomier economic outlook for China.
As Chinese technology companies drove the benchmark index to its lowest
level in more than a decade, Hong Kong stocks fell. After a string of interest
rate hikes fueled concerns about a coming recession, losses widened as
investors avoided riskier assets amid a decline in local currencies.
At the closing, the Hang Seng Index lost 3.4% to 17,250.88, its lowest level
since October 2011, as 71 of the 73 index constituents experienced losses. As
wagers on market intervention decreased, the Tech Index fell by 3.9% and the
Shanghai Composite Index fell by 1.6%.
Tencent fell 2.4 percent to HK$274, JD.com down 5.6 percent to HK$201, while
Alibaba Group Holding fell 4.1 percent to HK$74.70. As the British pound fell,
HSBC fell 5.8% to HK$40. Property developer Country Garden saw a 13% decline to
HK$1.89 and a 12% decline in its property management unit, Country Garden
Services, to HK$12.52. Major Asian markets also fell. The Nikkei 225 in Japan,
the Kospi in South Korea, and the S&P/ASX 200 in Australia all had declines
of at least 1%.
