19.03.202602:38:30UTC+00Hang Seng Retreats as Wall Street Slide, IPO Concerns Weigh

Hong Kong stocks fell 314 points, or 1.2%, to 25,712 in Thursday morning trade, ending a three-session winning streak after a sharp overnight sell-off on Wall Street. The U.S. Federal Reserve left interest rates unchanged on Wednesday, as widely expected, but Chair Jerome Powell cautioned that surging energy prices linked to tensions in the Middle East could add renewed pressure to inflation.

Sentiment was further dampened by reports that Beijing is tightening oversight of Chinese companies incorporated offshore that are seeking listings in Hong Kong, stoking concerns about the city’s IPO pipeline, at least in the short term.

Losses were partly limited by expectations that the People’s Bank of China will keep its key lending rates at record lows for a 10th consecutive month to support economic growth, with the March loan prime rate fixing due on Friday.

All Hang Seng sectors traded sharply lower, led by property, technology, and consumer names, as mainland Chinese markets also retreated. Notable decliners included Zijin Mining (-7.0%), Tencent (-5.7%), China Hongqiao (-3.7%), and SMIC (-3.2%).