Dec 15 Hong Kong stocks slumped to a four-month
low, tracking Asian markets, after the U.S. Federal Reserve
raised interest rates and rate-path projections.
The benchmark Hang Seng index extended early losses
to end down 1.8 percent, at 22,059.40 points. The Hong Kong
China Enterprises Index lost 2.3 percent, to 9,479.16
The market had priced in the U.S. quarter-point rate
increase, but investors were spooked after the Fed projected
three hikes next year, up from two previously, indicating a more
aggressive tightening path.
The market lost ground across the board, with the energy
sector, raw materials and real estate shares
falling more than 2 percent at the close.
Property shares lost favour with investors after Hong Kong
raised the city's base rate by 25 basis points, thanks to the
Hong Kong dollar's peg to the greenback.
The financial sector also fell sharply, led by
mainland banks and insurers, amid concerns of a liquidity crunch
there after several China treasury futures contracts fell to
their daily limit.
(Reporting by Jackie Cai and John Ruwitch; Editing by