Hong Kong stocks see longest run of declines in two decades as city is hit by transport chaos
- The MSCI Hang Seng Index dropped for a ninth straight day, the longest such streak since 1997
- MTR and Cathay Pacific fell as demonstrators grounded rail service and flight crew joined the protest with strike
Hong Kong stocks posted their longest declining stretch in more than two decades, as protesters paralysed the city’s transport, disrupting commuter services and forcing flight cancellations. Meanwhile, China’s yuan weakened to breach the 7 mark against the US dollar.
The MSCI Hong Kong Index lost around 3 per cent for a ninth straight day of declines on Monday. The last time such a run took place was back in March 1997, a few months before the handover of the former British colony and the Asian financial crisis. The Hang Seng dropped 2.9 per cent to 26,151.32. The Shanghai Composite Index sank 1.6 per cent to 2,821.50, its lowest close since February.
The yuan weakened to above 7 against the US dollar on both onshore and offshore markets on Monday, as an abrupt announcement by Washington on Friday to impose new tariffs on US$300 billion of Chinese goods continued to roil the currency market.
The onshore yuan weakened 1.4 per cent to 7.0352 against the US dollar, while the currency trading on the offshore market also slid by that much to a record low of 7.0760.
After the weekend’s intense stand-offs across the city, the protesters brought to a ground standstill eight metro lines by preventing train doors from closing and flight crew went on a strike, forcing the cancellation of more than 100 flights.
Chief Executive Carrie Lam said at a press conference on Monday that the unrest was pushing Hong Kong to the verge of a “very dangerous situation.” The protesters demand the full withdrawal of the extradition bill and an inquiry into police actions over the handling of demonstrations.
