Investors are also concerned about the threat of a global economic slowdown as central banks around the world raise interest rates to deal with rising prices.
A financial expert told the BBC the “panic sales are ridiculous”.
In his first policy speech on Wednesday, Hong Kong’s new chief executive said:
However, he did not elaborate on economic goals for the city, which has lost ground to rival Asian financial centers such as Singapore.
Hong Kong’s economy is currently in a technical recession, after seeing two consecutive three-month periods of contraction this year, the BBC reported.
Until recently, the city had some of the world’s strictest Covid-19 rules as it followed China’s zero-Covid policy.
“The Hang Seng has hit a 13-year low and nothing really helps the fragile sentiment,” the BBC was quoted as saying Dickie Wong, executive director of Kingston Securities.
“There is also a feeling that tax cuts are not enough to lure foreigners back to Hong Kong,” he added.
Traders were also concerned about the Hong Kong government’s “unprecedented silence on key economic indicators”.
However, Tay added that investors were mainly concerned about “the economic outlook (of China) and an increase in Covid cases in the middle of the party congress in Beijing”.
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