HONG KONG, Sept 21 (Reuters) - Hong Kong stocks slipped on
Tuesday, a day after worries about the future of embattled
developer China Evergrande Group shook global markets.
The Hong Kong benchmark, which sank to its lowest
since Oct. 5, 2020 in morning trade of 23,771.46, was down 0.3%
at 24,022.12 by midday break. China Evergrande fell
An index tracking property and construction stocks
gained 1%, recovering from sharp declines on Monday, led by a
14.2% surge in Guangzhou R&F Properties after it said
it would raise $2.5 billion by borrowing from major shareholders
and selling a subsidiary.
"The market sentiment improved a bit on R&F fund raising
cheers," said Steven Leung, a sales director at UOB Kay Hian in
Hong Kong, adding, default risk was still a significant concern.
Mainland Chinese stock markets are closed for the mid-autumn
festival till Sept. 21 and will reopen on Wednesday, Sept. 22.
Evergrande, China's most indebted developer, faces a major
test this week as it is due to pay $83.5 million in interest
relating to its March 2022 bond on Thursday. It
has another $47.5 million payment due on Sept. 29 for March 2024
Evergrande is confident it will "walk out of its darkest
moment" and deliver property projects as pledged, its chairman
said in a letter to staff reported by local media.
Overnight, the S&P500 shed 1.70%, its biggest drop in
four months, which analysts attributed to worries about
Evergrande shaking already jittery markets.
Chinese tech stocks listed in Hong Kong fell on Tuesday,
with the Hang Seng Tech Index down 1.5%.
Bilibili led the slide in the tech index, dropping
4.5%, while NetEase dropped 4.2%.
Hong Kong property stocks rebounded following a sell-off in
the previous session with CK Asset rising 1.9%, SHKP
gaining 1.6%, New World Development climbing
1.2% and Henderson Land up 0.5%.
Both the Hong Kong dollar and the Chinese yuan,
traded offshore, steadied after weakening to a three-week
low against the dollar on Monday.
(Reporting by Alun John and Donny Kwok; Editing by Rashmi Aich)