Hong Kong Stocks on Shaky Ground After $118 Billion Wipeout

(Bloomberg) — A recovery in Hong Kong stocks looked fragile as protests extended into Tuesday, disrupting road and rail networks.

The Hang Seng Index rose just 0.3% as of 9:35 a.m. local time, following its sudden 2.6% loss on Monday that saw the city’s shares lose $118 billion in value. Local developers and landlords dropped after starting the session higher, with Wharf Real Estate Investment Co. down 2.1%. The Hong Kong dollar weakened.

Monday’s tumble came after a rally in the city’s shares that had added $530 billion amid a liquidity-fueled surge in global equities. The buying momentum was so strong it had sent the Hang Seng gauge into overbought territory for the first time since April.

© Bloomberg Hong Kong stocks dip below long-term average

Protesters Disrupt Morning Commute Again: Hong Kong Update

Protests have escalated in violence after one student died last week falling from a garage during a police dispersal operation and another was shot by a policeman. Protesters also set a man alight. Monday’s clashes led to about 260 arrests and left nearly 100 people injured.

To contact the reporter on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net

To contact the editors responsible for this story: Sarah Wells at smcdonald23@bloomberg.net, Sofia Horta e Costa, Philip Glamann

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