Hong Kong’s Paul Chan warns of market volatility, but holds back on intervention
Hang Seng Index suffers largest single-day loss since 1997, falling 3,021 points, with market turnover hitting record HK$620 billion
Hong Kong Financial Secretary Paul Chan Mo-po warned of more volatile trading ahead but refrained from intervening in the market after the city’s benchmark Hang Seng Index suffered its steepest fall in decades on Monday amid fears over repercussions of US President Donald Trump’s trade war.
While Chan held off from introducing measures, he nevertheless warned that investors should be cautious as “pessimism” enveloped the world.
The Hang Seng Index suffered its largest single-day loss since 1997, falling 3,021 points to 19,828, its lowest level since January 23. The stock market saw a record turnover of HK$620 billion (US$79.74 billion).
Chan noted no irregularities were found in local trading, saying: “Hong Kong stocks were traded in a smooth and an orderly manner, and there is nothing unusual found in the system.
“Any retaliatory measures and central banks’ responses to interest rate policies will trigger volatility in capital flow. We urge residents to be mindful of risk management when making investments.”
Besides the Hang Seng Index, all 14 other major equity indexes in the Asia-Pacific region dropped, with 11 of them hitting their lowest levels in at least 52 weeks.