Hong Kong Market falls on weak offshore cues, Fed rate hike woes

Hong Kong share market finished session at the lowest level in more than three months on Tuesday, 23 August 2022, on following the broadly negative cues from Wall Street overnight amid concerns over future rate hikes to tame inflation and a weakening global economy. Meanwhile, sentiments were also hurt by feared that recent measures from Beijing were not sufficient to turn around the property sector.

At closing bell, the benchmark Hang Seng Index fell by 153.73 points, or 0.78%, to 19,503.25. The Hang Seng China Enterprises Index dropped by 46.44 points, or 0.69%, to 6,648.85.

Wall Street lost ground overnight set a negative tone, with investors concerned that this week's speech by Fed Chairman Jerome Powell at the annual global central banking conference in Jackson Hole will underscore the central bank's ongoing commitment to its aggressive monetary policy to tackle inflation.

Three cuts to key lending rates in China this year, including the latest this week, have failed to spark buying interest, as some money managers called for a strong dose of stimulus to recharge the economy hobbled by a housing market crisis.

Companies slated to report their earnings on Tuesday weakened, with Ping An Insurance dropping 1.3% to HK$42.95 and Henderson Land retreating 1.6% to HK$27.25. Meituan fell 1.4% to HK$168.70 while Geely Automobile sank 6.3% to HK$16.16.

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