Hong Kong stocks slip a day after $118bn wipeout

Hong Kong stocks fell as protests extended into Tuesday, disrupting road and rail networks.

The Hang Seng Index slipped 0.1% as of 11:17 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 down 1.9%. The Hong Kong dollar was little changed.

Monday’s tumble came after a rally in the city’s shares that had added $530 billion amid a liquidity-fuelled 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.

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.

© 2019 Bloomberg L.P.