HK property stocks sink to 5-year low on fears of tighter China grip, Evergrande

Beijing could be seeking to address stratospheric housing prices it blames for 2019's social unrest in special administrative region

Angela Tan

Published Tue, Sep 21, 2021 · 05:50 AM

China

Singapore

EVEN before investors can enjoy any reprieve from an escalating liquidity crisis at developer China Evergrande, Hong Kong property stocks plunged to their lowest in five years on fears that China's regulatory tentacles may soon be felt in the special administrative region as Beijing seeks to address the stratospheric housing prices it blames for the 2019 social unrest.

The Hong Kong market kicked off Monday morning tumbling more than 1,000 points following a Reuters report after Friday's market close that Beijing has a new mandate for Hong Kong property tycoons: help resolve the city's housing issues.

The Hang Seng Index eventually closed at 24,099.14, down 821.62 points, or 3.30 per cent. Meanwhile, the Hang Seng Properties index, which tracks a dozen listed developers, shaved off 1,947.…