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Hong Kong Market falls on China pandemic

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Capital Market
Last Updated : Dec 23 2022 | 8:50 PM IST
Hong Kong share market finished session lower on Friday, 23 December 2022, as worsening COVID outbreak revived concerns about the hit to growth in the world's second-largest economy. Meanwhile, concerns over a hawkish U.S. Federal Reserve also dragged on markets.

At closing bell, the benchmark Hang Seng Index declined by 86.16 points, or 0.44%, to 19,593.06. The Hang Seng China Enterprises Index was down 73.42 points, or 1.09%, to 6,642.90. The city's financial markets will be closed on Monday and Tuesday for the Christmas break.

China's biggest cities, including Beijing and Shanghai, are seeing massive spikes in Covid-19 cases since the nation abruptly ended its pandemic restrictions. New analysis revealed the country is likely experiencing 1 million COVID infections and 5,000 virus deaths every day.

China is expecting a peak in COVID-19 infections within a week, a health official said, with authorities predicting extra strain on the country's health system even as they downplay the disease's severity and continue to report no new deaths.

Sentiment was also cautious as strong US economic data reignited fears that the Federal Reserve will continue to raise borrowing costs to cool inflation.

Top gainers in the Hang Seng index were telecom service China Unicom, up 6.8%, followed by insurer AIA, up 3.3%, and Wuxi Biologics, up 3.3%, while worst performer were Alibaba Health Information Technology, off 5%, and automaker BD, off 3.7%.

Among blue chips, Electric-vehicle maker BYD shed 3.7% to HK$194.10, and JD.com lost 2.1% to HK$227.80. NetEase lost 2% to HK$113.30, and Alibaba Group Holding slipped 1.6% to HK$86.50. Alibaba Health slid 5% to HK$7.09 after posting a loss for the six-month period ended in September.

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First Published: Dec 23 2022 | 4:47 PM IST

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