Evergrande shares plunge more than 10%, Hang Seng index drops 2%


The Hang Seng Index dropped the most in the Asia-Pacific stock market in the first session of the week on September 20 when shares of the Chinese real estate “debt bomb” Evergrande Group evaporated strongly.

In an effort to save the risk of collapse, Evergrande has hired many consulting firms, including the independent financial consulting firm Houlihan Lokey – which once advised on the restructuring of Lehman Brothers. Photo: AFP

The Hang Seng Index fell 2.18% this morning as shares of Hong Kong-listed Chinese real estate Evergrande Group plunged more than 10%.

Shares of insurance companies listed in Hong Kong also fell sharply, with AIA shares falling 3.6% and Ping An Insurance shares losing nearly 7%.

The S&P/ASX 200 index in Australia this morning fell 1.21% as mineral stocks fell sharply. For example, Rio Tinto shares fell 3.66%, while shares of BHP and Fortescue Metal slides one after another 4.16% and 6.09%.

The MSCI Asia-Pacific Index (excluding Japan) fell 1.23% in the morning session. Mainland China, Japan, and South Korea stock markets are closed today for a public holiday.

As every year, Wall Street continued to struggle to find gains in September. For the first time in 2021, the Dow Jones Industrial Average last week witnessed a third consecutive week of declines.

The focus of investors’ attention this week is the September policy meeting of the US Federal Reserve (Fed) with the possibility that the agency will tighten loose monetary policy.

In the currency market, the US dollar index against other major currencies this morning bounced to 93.281, from below 93. The Japanese yen slipped and traded at 109.94 JPY/USD, from 109, 6 JPY/USD set last week. The Australian dollar also weakened to 1 AUD for 0.7244 USD, compared to 1 AUD/0.736 USD recorded last week.

Oil prices traded by Asian hours this morning fell. Brent crude oil futures fell 0.58% to $74.90/barrel while US crude futures slid 0.74% to $71.44/barrel.