The Hong Kong leading index Hang Seng lost around four percent on Monday.
(Photo: AP)
Tokyo The possible insolvency of China’s leading real estate company Evergrande pushed the Hong Kong stock exchange deep into the red on Monday. The Hangseng index fell 3.9 percent in morning trading, the sharpest drop since July. At the close of trading, the index was still 3.3 percent below the closing price on Friday at 24,099 points. The Chinese mainland stock exchanges as well as the trading centers in Japan and South Korea were meanwhile closed due to public holidays.
The local real estate giants in particular dragged the market down. The price of the Hong Kong-listed Evergrande group fell again by a good ten percent by the end of trading and closed at 2.23 Hong Kong dollars (the equivalent of around 0.24 euros), the lowest level in ten years. The share of Henderson Land Development has since dropped by more than twelve percent.
Investors worry that Evergrande’s potential insolvency could infect not only the Chinese economy but also the Hong Kong real estate sector.
Read on now
Get access to this and every other article in the
Web and in our app for 4 weeks free of charge.
Further
Read on now
Get access to this and every other article in the
Web and in our app for 6 weeks.
Further