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Hong Kong shares fall 1.3 percent after drop on Wall Street

Hong Kong shares fall 1.3 percent after drop on Wall Street

Hong Kong stocks fell Friday after U.S. shares dropped overnight and former Federal Reserve Chairman Alan Greenspan expressed concern over China's soaring share prices.
The blue-chip Hang Seng Index fell 278.31 points, or 1.3 percent, to 20520.66.
"Greenspan's warning about China's stock market has prompted many investors to trim their portfolios of mainland stocks. Worries about further tightening measures in China will likely make the index trade in a range between 20,200 and 20,800 in the short term," said Y.K. Chan, a strategist at Phillip Capital Management.
Greenspan told a management conference in Spain on Wednesday that the boom in China's stock markets was "clearly unsustainable," adding "there is going to be a dramatic contraction at some point."
Hong Kong's stock market was closed Thursday for a public holiday, and China-related shares fell when the market reopened Friday. The Hang Seng China Enterprises Index, which tracks shares of China-registered companies, dropped 2 percent.
However, mainland China shares, which dipped Thursday, rose to a fresh record Friday, with the benchmark Shanghai Composite Index gaining 0.7 percent to 4,179.78.
In Hong Kong trading, China Mobile fell 2 percent to HK$72.15, while Chinese financial stocks also closed lower.
China Life dropped 3 percent to HK$24.85, ICBC fell 2 percent to HK$4.11, and Bank of China lost 1 percent to HK$3.85.
Overnight, the Dow Jones industrial average dropped 0.6 percent to 13441.13, after U.S. housing data showed sales surged in April by the largest amount in 14 years, damping hopes that an interest rate cut would be needed to stimulate the U.S. economy.
Lenovo rose 14 percent to HK$3.66 after posting better-than-expected fourth-quarter results.


Updated : 2021-10-18 17:01 GMT+08:00