Oct 4 (Businesshala) – Hong Kong shares fell on Monday, dragged by healthcare stocks, but investors were closely watching troubled developer China Evergrande, whose shares were suspended before a major transaction was announced.
** The Hang Seng Index fell 2.25% to 24,022.64, while the China Enterprises Index fell 2.43% to 8,514.21. ** Mainland sugar markets remain closed for a public holiday. ** Entangled developer China Evergrande will sell half a stake in its asset management unit to Hopson Development for more than $5 billion, Chinese media said on Monday, after both Evergrande and Hopson requested a trading halt ahead of a major transaction.
** Shares of Evergrande’s electric vehicle unit rose 10.6%.
** Asset stocks declined but outperformed the broader market. The property sub-index dropped 0.43% and the mainland property sub-index lost 0.14%, while shares of some developers lost ground, such as Guangzhou R&F Properties Co. Ltd which fell 5.85%.
** A sub-index tracking healthcare shares fell 4.74%. ** Market sentiment in Hong Kong is very fragile at the moment and the market is looking forward to any signs of bad news,” said Dickie Wong, executive director of research at Kingston Securities. ** Wong blamed the news for declining healthcare stocks after Merck & Co. had developed an experimental antiviral pill that could prevent death or hospitalization for people at risk of contracting severe COVID-19. can halve the chances.
** The Hang Seng Tech Index fell 1.95%. (Reporting by Alun John; Editing by Krishna Chandra Eluri)