Hong Kong’s Hang Seng Index Hits 13-Year Low

Shares in Hong-Kong on Thursday fell to its lowest level since the global financial crisis.



The benchmark Hang Seng index fell more than 3 percent to its lowest level since May 2009, before regaining some ground, reports the BBC.

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: John Lee announced measures to increase security and plans to attract more foreign talent to the area.

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”. Kelvin Taysaid the regional chief investment officer at UBS Global Wealth Management.

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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