Dec 12 Hong Kong stocks fell the most in one
month on Monday, hurt by a tumble in mainland shares and after
U.S. President-elect Donald Trump's comments on the "one China"
policy risked inflaming tensions between Beijing and Washington.
China's stocks tumbled the most in six months on Monday
after regulator's fresh measures to rein in insures' aggressive
Adding to market anxiety, Trump said the United States did
not necessarily have to stick to its long-standing position that
Taiwan is part of "one China".
Investors were already cautious ahead of a Federal Reserve's
policy meeting later this week which is widely expected to bring
a U.S. interest rate hike for the first time this year, making
emerging markets less attractive.
Hong Kong's currency peg to the U.S. dollar ensures that
interest rates follow that of the United States, meaning higher
borrowing costs for real estate developers. An index tracking
property shares lost over 2 percent at the close.
"The main reason for today's losses is Trump," said Alex
Wong, Hong Kong-based director at Ample Finance Group, adding
that the market was worried about China-U.S. trade after Trump's
"You can tell from the slump in the industrial shares. If
you worry about the relationship between China and America,
industrial sector would be bruised the most."
The benchmark Hang Seng index extended early losses
and dropped 1.4 percent, to 22,433.02, while the China
Enterprises Index lost 1.7 percent, to 9,699.31 points.
All sectors in the city lost ground.
(Reporting by Jackie Cai and John Ruwitch; Editing by Shri