Hong Kong’s benchmark stock index fell more than 3 percent on Monday as a global selloff in financial markets intensified amid growing concerns that policymakers were reaching their policy limits in boosting weak growth.
The Hang Seng index dropped 3.4 percent to 23,290.60 points, the worst performer in regional markets and its biggest single day fall since early Feb. 11, according to Thomson Reuters data.
All of its 50 constituents were in the red with financials and information technology companies leading losses.
As bond yields across markets hit multi-month highs for a second session on Monday, global investors were harshly reminded that central banks may be out of both ammunition and ideas to stimulate economies – eight years after the global financial crisis provoked an unprecedented flood of central bank liquidity to keep markets afloat.
While the Hong Kong market has broadly underperformed its developed market peers this year, a recent rally has pushed it ahead of its U.S. market counterpart on a year to date basis, according to Thomson Reuters data.