Hong Kong Market falls on profit taking

Hong Kong stock market finished session lower on Friday, 10 December 2021, snapping a three-day advance, as investors locked in gains from their strong rally amid uncertainty in the China's property sector after Evergrande and Kaisa Group Holdings officially defaulted on their dollar debt.

At closing bell, the benchmark Hang Seng Index declined 1.07%, or 259.14 points, to 23,995.72. The Hang Seng China Enterprises Index dropped 0.92%, or 79.44 points, to 8,578.33.

Fitch Ratings on Thursday declared Evergrande and Kaisa in default after they failed to repay offshore bondholders. The failures could trigger a cross-default in debt owed by the two developers. Evergrande has US$19 billion of dollar bonds outstanding while Kaisa owes US$11.6 billion.

Three companies started trading in Hong Kong. Canbridge Pharmaceuticals slumped 27% and drug maker Asymchem Laboratories slipped 4.6%. Gushengtang Holdings, a Chinese medical service provider, was unchanged.

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