Volatility to batter Hong Kong and other financial markets worldwide
The wild ride taken by the Hang Seng isn’t over.
Financial Secretary John Tsang expects fluctuations in Hong Kong and in global financial markets to continue since the Eurozone debt crisis remains unsettled.
Tsang said the recent loss in Hong Kong shares was expected and warned investors to be vigilant. He said he included measures to alleviate the situation in his last budget as he anticipated the global economies would remain unstable.
On May 16, the Hang Seng index posted its biggest loss in six months after Chinese media reported flat loan growth for the “Big Four” state-owned banks in the first two weeks of May.
The news sparked fears about the decelerating Chinese economy This plus news of Greece’s failure to form a government and a three-day losing streak on Wall Street combined to unnerve investors.
The Hang Seng Index ended down 3.2% at 19,259.83, the lowest close since Jan. 16 and its biggest drop in a day since Nov. 10 when it had fell 5.2%.