Hong Kong stocks hit 10-month low

Concerns on major Chinese property developer’s debt woes and rising scrutiny on Macau casinos drive selloff
Newsfeed17 Sep 2021
    Photo credit: AFP Photo


    Hong Kong shares fell to their lowest since early November, as concerns over a major Chinese property developer’s debt woes and rising government scrutiny on Macau casino operators drove investors to sell.

    The Hang Seng Index closed 1.46% lower at 24,667.85, taking declines into a fourth day, with the real estate sector leading the losses. The Shanghai Composite Index fell 1.34% to 3,607.09.

    Worries that other Chinese developers may run into similar financial troubles as China Evergrande Group (3333 HK) were intensified after a unit of the Guangzhou-based firm said its onshore bonds were suspended from trading on Thursday (16 September). Traders were also assessing the future prospects for casinos in Macau after their record slump a day ago as Beijing moved to tighten grips on the operators.

    A Bloomberg index of the six casino operators in the gambling enclave slumped 5.7%, adding to the record 23% plunge Wednesday.

    The government is looking at appointing representatives to “supervise” the casino operators as well as boosting local shareholdings and tightening controls on the distribution of dividends. The regulatory crackdown comes after years of slowing growth and the pandemic, which had brought the city to a virtual standstill. – Bloomberg News.



    Prime Minister Narendra Modi’s administration, which is seeking to ensure food security in the world’s second most populous nation, has signed preliminary agreements with the three US titans and a slew of local businesses starting April to share farm statistics it has been gathering since coming to power in 2014. Modi is betting the private sector can help farmers boost yields with apps and tools built from information such as crop output, soil quality, and land holdings.

    With the project, Modi is seeking to usher in long-due reforms to make over a farm sector that employs almost half of the nation’s 1.3b people and contributes about a fifth of Asia’s third biggest economy. The government is counting on the project’s success to boost rural incomes, cut imports, reduce some of the world’s worst food wastages with better infrastructure, and eventually compete with exporters such as Brazil, the US, and the European Union.

    Besides the tech giants, many smaller companies and startups are likely to join the programme. When completed, the project will form the core of a national digital agriculture ecosystem to help farmers realise better profitability with access to right information at the right time, and to facilitate better planning and execution of policies, according to the government’s consultation paper on digital agriculture. – Bloomberg News.

    Australia’s S&P/ASX 200 Index fell 0.63% to 7,413.30 on Friday morning. The benchmark closed 0.58% higher at 7,460.20 the previous session.

    South Korea’s Kospi Index opened 0.49% lower at 3,114.73 in early-Friday trading, adding to Thursday’s loss of 0.74% to 3,130.09.

    The Taiwan Stock Exchange Weighted Index slid 0.43% to 17,278.70 on Thursday.

    The information published by DBS Bank Ltd. (company registration no.: 196800306E) (“DBS”) is for information only. It is based on information or opinions obtained from sources believed to be reliable (but which have not been independently verified by DBS, its related companies and affiliates (“DBS Group”)) and to the maximum extent permitted by law, DBS Group does not make any representation or warranty (express or implied) as to its accuracy, completeness, timeliness or correctness for any particular purpose. Opinions and estimates are subject to change without notice. The publication and distribution of the information does not constitute nor does it imply any form of endorsement by DBS Group of any person, entity, services or products described or appearing in the information. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment or securities. Foreign exchange transactions involve risks. You should note that fluctuations in foreign exchange rates may result in losses. You may wish to seek your own independent financial, tax, or legal advice or make such independent investigations as you consider necessary or appropriate.

    The information published is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to subscribe to or to enter into any transaction; nor is it calculated to invite, nor does it permit the making of offers to the public to subscribe to or enter into any transaction in any jurisdiction or country in which such offer, recommendation, invitation or solicitation is not authorised or to any person to whom it is unlawful to make such offer, recommendation, invitation or solicitation or where such offer, recommendation, invitation or solicitation would be contrary to law or regulation or which would subject DBS Group to any registration requirement within such jurisdiction or country, and should not be viewed as such. Without prejudice to the generality of the foregoing, the information, services or products described or appearing in the information are not specifically intended for or specifically targeted at the public in any specific jurisdiction.

    The information is the property of DBS and is protected by applicable intellectual property laws. No reproduction, transmission, sale, distribution, publication, broadcast, circulation, modification, dissemination, or commercial exploitation such information in any manner (including electronic, print or other media now known or hereafter developed) is permitted.

    DBS Group and its respective directors, officers and/or employees may have positions or other interests in, and may effect transactions in securities mentioned and may also perform or seek to perform broking, investment banking and other banking or financial services to any persons or entities mentioned.

    To the maximum extent permitted by law, DBS Group accepts no liability for any losses or damages (including direct, special, indirect, consequential, incidental or loss of profits) of any kind arising from or in connection with any reliance and/or use of the information (including any error, omission or misstatement, negligent or otherwise) or further communication, even if DBS Group has been advised of the possibility thereof.

    The information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. The information is distributed (a) in Singapore, by DBS Bank Ltd.; (b) in China, by DBS Bank (China) Ltd; (c) in Hong Kong, by DBS Bank (Hong Kong) Limited; (d) in Taiwan, by DBS Bank (Taiwan) Ltd; (e) in Indonesia, by PT DBS Indonesia; and (f) in India, by DBS Bank Ltd, Mumbai Branch.