Hong Kong Shares Hit 3-mth Low On Greek Crisis, China Stock Slump

There will likely be a default by Greece, which would hit global and Hong Kong markets

1 min read
Asian stock markets sank Monday after Greece closed its banks and imposed capital controls in a dramatic turn in its struggle with heavy debts. (Photo: AP)<a></a>

Hong Kong stocks dropped to their lowest level in three months, as investors reacted to negative developments in Greece as well as the slump in mainland markets.

The Hang Seng index fell 2.6 percent, to 25,966.98, while the China Enterprises Index lost 3.0 percent, to 12,694.66 points. Hong Kong stocks took cues from sluggish global markets, as investors moved toward safe haven currencies and assets on Monday as Athens faced a debt default.

Investor sentiment was also hurt by the continued sell-off in mainland markets, despite fresh government easing moves announced over the weekend.

There will likely be a default by Greece, which would hit global and Hong Kong markets.
– Sam Chi Yung, Strategist,  Delta Asia Securities

He added that the Chinese central bank’s moves to cut both interest rates and banks’ reserve ratios over the weekend “implies that China’s economy is in really bad shape, and that’s not good for businesses, and is negative to stocks.”

Stocks in Hong Kong fell across the board.

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