Hong Kong Stocks Close Lower After US Fed Rate Hike; Gold, Property Stocks Fall
SingTao · 2 SOURCESabout 4 hours ago2 MIN
Summary
The Hang Seng Index closed at 24,604 points on Thursday, September 17, 2026, falling 109 points or 0.44%, marking a two-month low. The decline came after the US Federal Reserve raised interest rates for the first time in over three years, with the dot plot suggesting one more rate increase could follow before year-end . The market initially dropped more than 350 points but recovered most losses by closing, with trading volume reaching approximately 185.6 billion HKD . Rate-sensitive sectors including tech stocks, property developers, and gold mining companies bore the brunt of the sell-off .
Key Points
- The Fed raised rates as expected, with 16 of 18 officials on the dot plot indicating another rate increase is appropriate this year
- Major tech stocks fell: Meituan (3690) dropped 2.1% to HKD 72.9, Tencent (700) fell 1.7% to HKD 426, Alibaba (9988) slipped 1% to HKD 105.1
- Property stocks declined on higher borrowing costs: Sun Hung Kai (016) fell 1.3% to HKD 108.2, Longfor (960) dropped 1.9% to HKD 5.465
- Gold mining stocks were the worst performers: Old Gold Shop (6181) fell 3%, Shandong Gold (1787) plunged 5.2% to HKD 23.3, Zijin Gold International (2259) sank 4.1%
- Northbound capital extended its buying streak to nine consecutive days with a net inflow of HKD 33.64 billion
Why It Matters
The Fed's rate decision signals persistent inflationary pressures that could further squeeze Hong Kong's borrowing costs, affecting both property developers and consumers. With the Hang Seng Index falling to a two-month low and trading volume remaining subdued below HKD 200 billion, market sentiment appears fragile ahead of potential additional rate hikes .
The Fed's rate decision signals persistent inflationary pressures that could further squeeze Hong Kong's borrowing costs, affecting both property developers and consumers. With the Hang Seng Index falling to a two-month low and trading volume remaining subdued below HKD 200 billion, market sentiment appears fragile ahead of potential additional rate hikes .