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As it happened: Hong Kong stocks hit 4-month closing low after Fed raises rate; insurers and property shares tumble
Shanghai shares also log the lowest close in more than a month, with financials leading losses
Reading Time:10 minutes
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Welcome to SCMP’s China Markets live blog. The Federal Reserve raised its benchmark interest rate on Wednesday by a quarter percentage point, as widely expected, and upgraded its outlook for 2017. However, it surprised investors by signalling plans to raise rates more aggressively in the next year. The rate decision and statement have big implications on global economies and financial markets. We’ll bring you the key levels, price action, and more developments in the region as they happen. Stay tuned.
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Here’s a summary of market action so far today:
- Yuan tumbles to the lowest level in eight and half years, triggering fears capital outflows will accelerate
- Chinese government bonds plunge by their daily allowable limit for the first time on record
- Hang Seng Index closes at its lowest level since August 4, down 1.8 per cent
- Shanghai Composite drops to the lowest close since November 2, down 0.7 per cent
- Blue chips fall broadly, with property shares among top losers
- Hong Kong lifts the base rate for the first time in a year, following the Fed
5pm | Julia Hollingsworth
Below is a chart about the daily movements of the Hang Seng Index (yellow) and the Shanghai Composite Index (purple). The percentage at the end of the chart represents the different from the opening, not from previous close. Click to enlarge the chart.
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4.20pm | Hong Kong stocks hit 4-month closing low | Julia Hollingsworth
The Hang Seng Index closed at its lowest level since August 4, down 1.77 per cent or 397.22 points to 22,059.40.
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