Hong Kong Market falls on US rate concerns, Taiwan tensions: Key highlights and analysis

The Hong Kong share market took a hit on Friday, May 24, 2024, as it closed deeply in negative territory following a widespread sell-off on Wall Street. The decline was triggered by the release of stronger-than-expected US economic data and slightly hawkish minutes from the Federal Reserve, which dampened hopes of imminent interest rate cuts in the US.

Adding to the market woes were escalating geopolitical tensions between China and Taiwan, with China conducting military exercises around Taiwan to showcase its power and control capabilities. This heightened geopolitical uncertainty further fueled the negative sentiment in the market.

The benchmark Hang Seng Index tumbled 1.38%, closing at 18,608.94, while the Hang Seng China Enterprises Index also dropped 1.44% to 6,605.24. The majority of index members recorded losses, with key blue-chip stocks like Tencent, JD.com, and Meituan experiencing declines.

Additionally, companies like Alibaba announced plans to raise funds through convertible bonds for share repurchases, adding to the market turbulence. Lenders and developers were also among the worst performers, with stocks of New World Development, Hang Lung Properties, and Hang Seng Bank witnessing significant declines.

Overall, the Hong Kong market faced a challenging day driven by a combination of external economic factors and geopolitical tensions, reflecting the vulnerability of global markets to uncertainties in the current environment. Powered by Capital Market – Live News.