Hong Kong shares end near 4-month low as global recovery hopes falter

BEIJING: Hong Kong shares closed near a four-month low on Thursday following a selloff in equity markets worldwide, as a resurgence in COVID-19 cases and warnings from US Federal Reserve officials undermined hopes for a quick global recovery.

At the close of trade, the Hang Seng index was down 431.44 points, or 1.82pc, at 23,311.07, its lowest since May 29.

The Hang Seng China Enterprises index fell 1.96pc to 9,371.19.

The subindex of the Hang Seng tracking energy shares dipped 2.9pc, while the IT sector fell 2.9pc.

The financial sector ended 1.82pc lower and the property sector lost 0.18pc.

US Federal Reserve Vice Chair Richard Clarida on Wednesday called for more fiscal stimulus, saying the US economy remains in a "deep hole" of joblessness and weak demand.

Consecutive drops and resurgence in coronavirus cases abroad are delaying recovery in the United States and leading to market slumps, said Zhang Yanbing, an analyst with Zheshang Securities.

HK-listed shares of Chinese No.2 property developer China Evergrande Group fell 5.6pc to HK$15.22, the lowest since May 12.

Chinese online media posted a letter Evergrande addressed to Guangdong provincial government, dated Aug. 24, to pledge for support for its A-share backdoor listing plan.

China's main Shanghai Composite index closed down 1.72pc at 3,223.18 points, while the blue-chip CSI300 index ended down 1.92pc.

Around the region, MSCI's Asia ex-Japan stock index was firmer by 0.04pc, while Japan's Nikkei index closed down 1.11pc.

The yuan was quoted at 6.8244 per US dollar at 08:13 GMT, 0.23pc weaker than the previous close of 6.809.