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Hong Kong shares fall as Evergrande missing interest payment sparks jitters

reuters.com · 09/24/2021 04:39
Hong Kong shares fall as Evergrande missing interest payment sparks jitters

Hang Seng index ends down 1.3%

China Enterprises index HSCE falls 1.47%

Property sector slumps 2.28% on Evergrande concern

- Hong Kong shares ended lower on Friday, dragged down by broad losses across sectors, as global investors fretted over the impact of a missed bond interest payment by debt-laden developer China Evergrande.

** At the close of trade, the Hang Seng index .HSI was down 318.82 points, or 1.3%, at 24,192.16. The Hang Seng China Enterprises index .HSCE fell 1.47% to 8,604.99.

** The energy sub-index .HSCIE dipped 1.7%, the IT sector .HSCIIT dipped 1.12%, the financial sector .HSNF ended 0.9% lower and the property sector .HSNP slumped 2.28%.

** Property sector shares were hit after a bond interest payment deadline for heavily indebted developer China Evergrande Group EGRNY expired on Thursday, with bondholders reporting they had not been paid. nL1N2QQ02J

** China Evergrande's shares tanked 11.61%, making it the biggest percentage decliner among H-shares.

** China Evergrande New Energy Vehicle Group EVGRF dived 23.37% and Evergrande Property Services Group EVGPY fell 4.42%.

** China's main Shanghai Composite index .SSEC closed down 0.8% at 3,613.07, while the blue-chip CSI300 index .CSI300 ended down 0.08%.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.5%, while Japan's Nikkei index .N225 closed up 2.06%.

** The yuan CNY=CFXS was quoted at 6.4647 per U.S. dollar at 08:10 UTC, 0.07% weaker than the previous close of 6.46.

** At close, China's A-shares were trading at a premium of 46.54% over Hong Kong-listed H-shares.

(Reporting by Andrew Galbraith; editing by Rashmi Aich)

((Andrew.Galbraith@tr.com; +86 21 2083 0079; Reuters Messaging: andrew.galbraith.thomsonreuters.com@reuters.net ; Twitter: https://twitter.com/apgalbraith))