Stock Market

Hong Kong stock market plunged to April 2009 levels

The main Chinese stock indexes, listed in Hong Kong, fell to their lowest level since April 2009 against the backdrop of the continued super-soft policy of the Central Bank of Japan, writes CNBC.

At the auction in Hong Kong, the Hang Seng index fell at the moment by 4.26%, to 14,770.09 points – the indicator was last at this level on April 28, 2009. The Hang Seng China Enterprises Index, which tracks the dynamics of shares of Chinese companies, fell at the moment by 4.72%, to 4998.21 points, the Hang Seng Tech index – by 6.41%, to 2797.41 points, according to trading data.

Read also:  US stocks closed lower, Dow Jones down 1.15%

On Friday, October 28, the Bank of Japan kept interest rates at the same level (-0.1%) and continued to adhere to the “dove” policy. The regulator also said it would purchase the necessary volumes of Japanese government bonds at a fixed rate to keep 10-year bond yields close to 0%.

“Their strategy is to buy as much time as possible by intervening in the currency market from time to time,” Goldman Sachs (NYSE:GS) chief Japanese economist Naohiko Babaon told CNBC.

According to him, the Ministry of Finance and the Bank of Japan are currently following an “ultra-dove” policy.

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