Hong Kong Stock Market Drops Over 1000 Points... Largest Decline in 2 Years

[Asia Economy Beijing=Special Correspondent Sunmi Park] On the 9th, the Hong Kong stock market experienced its largest single-day drop in over two years due to the spread of COVID-19.

As of 1:05 AM on the 9th (local time), the Hong Kong Hang Seng Index stood at 25,230.55. During the morning session, it fell by 1,121.62 points (4.3%) to 25,025.05, marking the largest single-day drop since February 6, 2018, when it declined by 5.1%.

The rapid decline in the Hong Kong stock market was driven by investors' increased risk aversion amid the spread of COVID-19 and the shock of plummeting international oil prices. Alibaba Group's stock fell 3.2%, and Tencent also dropped 3.3%. Casino-related stocks, including Galaxy Entertainment (-3.6%), also declined across the board.

With a high proportion of foreign investors, the Hong Kong stock market was more severely impacted than mainland China's stock markets such as the CSI300 (-2.8%), Shanghai Composite Index (-2.4%), and Shenzhen Composite Index (-2.8%).

Kenny Won, strategist at Everbright Sun Hong Kai, said, "The market is expected to remain extremely volatile for the time being," and advised, "Technically, further declines in the Hang Seng Index are anticipated. It is recommended to reduce investments in the Hong Kong stock market until a rebound occurs."