Hong Kong's benchmark Hang Seng Index on Tuesday fell nearly 3 percent to its lowest level in over two weeks while the turnover dropping to the lowest in more than two years.
The Hang Seng Index tumbled 401.60 points, or 2.75 percent, to close at 14,220.79 on Tuesday, after the central bank's cuts on loan and deposit rates by 0.27 percentage points disappointed investors.
The rate cuts, announced Monday and effective Tuesday, was the fifth time the People's Bank of China has cut rates since September this year, the latest move to buoy the economy. Analysts said the rate cuts had been much anticipated and many investors accumulated their positions beforehand, only to sell as a result of the lower-than-expected cut.
The Hang Seng Index opened 1.03 percent lower at 14472.03, rebounded to the day high at 14491.75 and quickly extended its losses by over 3 percent. The index fell to the day low at 14,084.86 in the afternoon session.
Analysts said they expected volatility to continue in the coming sessions before the new year.
Turnover dropped to the lowest level in over two years of 31.95billion HK dollars (4.13 billion U.S. dollars), down from Monday's 36.49 billion HK dollars (4.71 billion U.S. dollars).
Three of the four major sub-indices lost ground. The properties sub-index fell most at 3.92 percent, followed by the commerce and industry at 3.33 percent and the finance at 2.48 percent. The utilities outperformed by gaining 1.47 percent.
Heavyweight HSBC Holdings was down 0.41 percent to 73.75 HK dollars, as the Singapore-based DBS Group and Mizuho Financial Group unveiled fundraising plans respectively Monday, raising the financing pressure on the bank.
Chinese insurers and banks moved lower across the board. China Life was down 3.83 percent to end at 22.60 HK dollars. Ping An was down 6. 69 percent to 36.25 HK dollars. PICC P&C dropped 6.31 percent to 4.01 HK dollars. CCB was down 4.8 percent to 4.36 HK dollars, ICBC down 2.56 percent to 4.19 HK dollars and Bank of China down 3. 08 percent to 2.20 HK dollars.
China Mobile lost 1.95 percent to 75. 5 HK dollars on moderate growth in new subscribers in November.
Source: Xinhua
|
Comment
Tell A Friend
Print Format
Save Article