New | Hang Seng Index plunges 1,600 points amid ‘panic selling’, as fear sweeps city after US market rout
Hang Seng Index on track for worst one-day drop in 2.5 years
Hong Kong stocks plummeted 1,600 points as contagion selling swept through the local market in morning trade on Tuesday, inflicting significant technical damage on price trends in the wake of a US market meltdown overnight that saw the Dow Jones industrials record its worst one-day points drop in history.
The Hang Seng Index was down 4.94 per cent, or 1,593.91, to 30,651.31 at the lunch hour break. The drop is the biggest single-day percentage drop since August 2015, when the index declined 5.2 per cent.
The Hang Seng China Enterprises Index lost 6.10 per cent, or 822.11 points, to 12,657.72, on course for its biggest drop in seven years, since falling 6.2 per cent in August 2011.
“In Hong Kong, initial signs of outflows have emerged. Investors should watch for further Hong Kong dollar weakness and its liquidity conditions in aggregate terms,” Kevin Lai, chief economist for Asia ex-Japan at Daiwa Capital Markets said in a note.
In other Asian trading on Tuesday afternoon, Japan’s Nikkei 225 was down 6.4 per cent to 21,222.56. South Korea’s Kospi was down 2.3 per cent to 2,433.049, while Australia’s All Ordinaries lost 3.2 per cent to 5,930.20.
Properties saw steep losses. Country Garden slumped 10.17 per cent to HK$14.66, while Sunac was hit with a 9.67 per cent dip to HK$31.30. Evergrande dived 8.32 per cent to HK$23.15 while China Overseas fell 7.44 per cent to HK$28.60.
