HONG KONG: Hong Kong shares closed flat on Tuesday with gains in Wuxi Biologics and Tencent offset by losses in Alibaba and AIA Group, while investors kept an eye out for clues from the US Federal Reserve about the timing of expected policy tightening.
The Hang Seng index was unchanged at 23,739.06, while the China Enterprises index was unchanged at 8,369.01 points.
“Hong Kong’s equity market can still get worse before it gets better unless we see major changes in the current policy risk factors,” Natixis analysts said in a note.
Some of Wall Street’s biggest banks now expect four US interest rate increases this year starting in March, a more aggressive call than a week ago.
In comments prepared for delivery at a congressional hearing later in the day, Fed Chair Jerome Powell pledged “to prevent higher inflation from becoming entrenched”.
The Hang Seng Tech index edged lower 0.1%, with Alibaba Group down 1.6%, while Tencent Holdings and Meituan finished up 1.5% and 0.7%, respectively.
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