Hong Kong Shares Suffer Biggest Fall In 3 Years On Greek Crisis Fears

July 6, 2015

NewsStandOnline.Net (6-July-2015): Hong Kong’s benchmark index closed at a three-month low today after the biggest one-day fall in three years, as investors worried that the Greek debt crisis could deepen.

The Hang Seng index fell 3.2 percent, its largest drop since May 16, 2012, to 25,236.28. The China Enterprises Index lost 3.0 percent to 12,231.43 points.

Hong Kong Shares Suffer Biggest Fall In 3 Years On Greek Crisis Fears

Hong Kong tracks global and regional markets, nearly all of which saw heavy selling after Greeks voted to reject conditions of a rescue package.

Stocks in Hong Kong fell across the board, with the Growth Enterprise Market slumping over 14 percent.

Economists said the markets were not expecting such a decisive “no” vote and that could send stocks downward and propel investors toward so-called “safe havens” such as U.S. Treasuries or other government bonds that are viewed as largely protected from market turbulence.

“The result was clearly a more decisive `no’ than the polls had suggested,” said Pavel Molchanov, equity research analyst at Raymond James. “This couldn’t be more bearish for equities and commodities alike.”

“The `Greferendum’ has turned out to be a `Grief-erendum’ at many levels,” analysts at Japan’s Mizuho Bank said in a statement.