The Hong Kong-based Hang Seng has had a tumultuous day of trading on October 8.
The marquee index, based in the financial powerhouse of the Asian continent, collapsed in the intraday trade amid an unprecedented sell-off.
Hang Seng Drops By 9%
This, interestingly, comes just a day after major gains that were made by Hang Seng. On Monday, October 7, the Hang Seng extended its rally to a 32-month high. The index witnessed an impressive surge of 1.6 per cent to 23,099.78 points. This was also the first time that the index crossed the threshold of 23,000 points since 2022.
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The index, which opened at 22,849.23, quickly started its descent to new lows, washing away all the gains the index had made yesterday. In the larger picture, the index also washed away a great tranche of the gains made in the recent past, especially since September 30.
Hang Seng's descent continued furthermore, hitting new lows in the span of the day's trade.
The lunch break did not aid the incessant collapse, as the post-lunch session saw a greater decline in momentum and the value of the city's index dipped further.
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The Hang Seng In Decline
As the day came to a close, the Hang Seng index dipped by 9.41 per cent or a mammoth 2,172.99 points. At 13:49 IST, the index dropped to a new low of 20,926.79.
This apparent surge that the Chinese indices, including Hang Seng and CS1300, SSE Composite and even Taiex, witnessed stemmed from the economic stimulus that was deployed by the Chinese central bank.
This included many policies to rejuvenate the second-largest economy, which has been marred by extensive sluggishness due to a decline in consumption, conducted by the Chinese population. In addition, the inability of sectors, particularly the real estate sector, has definitely not aided the ailing economy.