Hong Kong Stocks Drop After Fed Rate Hike

2026-09-17 02:06 By Nicole Aliyah 1 min. read

The Hang Seng Index declined 0.4%, to close at 24,604 on Thursday, paring a steeper intraday loss as biotech and semiconductor shares outperformed and helped cushion the broader decline.

The market remained cautious after the US Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% and signaled the possibility of another hike later this year, strengthening the US dollar and pushing Treasury yields higher.

The Hong Kong Monetary Authority raising its base rate by 25 basis points to 4.25% following the Fed’s move, weighing on Hong Kong property stocks as higher borrowing costs threatened recovery.

However, CICC said Hong Kong stocks could face greater volatility from renewed US monetary tightening, although the impact should be short-lived unless the Fed begins a sustained rate-increase cycle.

Among notable stocks, Tencent (-1.7%), Kingboard Laminates (-1.9%) and HKEX (-1.8%) declined, while Z.AI Co. (+2.9%), MiniMax (+7.1%) and Genscript Biotech (+14.3%) rose.



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Hong Kong Stocks Drop After Fed Rate Hike
The Hang Seng Index declined 0.4%, to close at 24,604 on Thursday, paring a steeper intraday loss as biotech and semiconductor shares outperformed and helped cushion the broader decline. The market remained cautious after the US Federal Reserve raised interest rates by 25 basis points to 3.75%-4.00% and signaled the possibility of another hike later this year, strengthening the US dollar and pushing Treasury yields higher. The Hong Kong Monetary Authority raising its base rate by 25 basis points to 4.25% following the Fed’s move, weighing on Hong Kong property stocks as higher borrowing costs threatened recovery. However, CICC said Hong Kong stocks could face greater volatility from renewed US monetary tightening, although the impact should be short-lived unless the Fed begins a sustained rate-increase cycle. Among notable stocks, Tencent (-1.7%), Kingboard Laminates (-1.9%) and HKEX (-1.8%) declined, while Z.AI Co. (+2.9%), MiniMax (+7.1%) and Genscript Biotech (+14.3%) rose.
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