Hong Kong Stocks Pressured After HKMA Intervention

Hong Kong stocks were lower due to capital flight after an intervention by the Hong Kong Monetary Authority. 

The HKMA intervened for the first time this year, leading to some profit-taking in the index from investors. 

HK50 – Daily Chart

HK50 - Daily Chart

HK50 has now retreated from the 22,523 resistance level, which could see a further pullback on a technical basis. A break above that level would open up the potential for a sustained move toward 30,000. 

Hong Kong stocks closed at the lowest level in more than five weeks amid concerns about capital flight from the city’s financial markets while traders await the latest US inflation report that may sway the Federal Reserve’s policy tightening bias. 

The Hang Seng Index dropped by 0.2%, which marked the lowest close since January 6. The Hang Seng Tech Index was also lower, falling 1%, and the Shanghai Composite Index rose 0.3%. 

The Hong Kong Monetary Authority purchased HK$4.22 billion (US$538 million) in overnight trading. It sold the equivalent number of US dollars to protect its currency peg. The local dollar weakened over the last few weeks as local banks failed to follow the Federal Reserve’s latest 25-basis point tightening move. 

Property stocks have been popular this year, with Guangdong Investment up 10%. The Hang Seng Property index is up about 3.1%, but investors have been keen on Hong Kong real estate investment trusts (REITs). The drop in the overall market has meant that stock prices are now lower than the value of the properties owned in the trusts. 

Hong Kong home prices dropped 15.6% in 2022, which was the end of a 13-year uptrend after covid lockdowns saw investment flows decrease from Chinese investors and tourists.

Recent News
Start Trading Now !

Try our demo account for free to learn trading. When you’re ready, switch to a live account and start trading for real.

Popular posts
ATFX

Restrictions on Use

Products and Services on this website are not suitable for Hong Kong residents. Such information and materials should not be regarded as or constitute a distribution, an offer, solicitation to buy or sell any investments.

使用限制: 本網站的產品及服務不適合香港居民使用。網站內部的信息和素材不應被視為分銷,要約,買入或賣出任何投資產品。

ATFX

Restrictions on Use

Products and Services on this website are not suitable for the UK residents. Such information and materials should not be regarded as or constitute a distribution, an offer, or a solicitation to buy or sell any investments. Please visit https://atfxgm.eu/en/ to proceed.

ATFX

Restrictions on Use

AT Global Markets (UK) Limited does not offer trading services to retail clients.
If you are a professional client, please visit https://atfxconnect.com