Why Hong Kong Stocks Just Hit a Three-Month Low

Inside A Securities Brokerage And General Stock Market Illustrations As China Stocks Plunge
A stockbroker works in front of a screen displaying share prices at a securities brokerage in Hong Kong, China, on Wednesday, July 8, 2015. Investors looking to sell Chinese shares have found themselves locked out of 71 percent of the market. At least 1,323 companies have halted trading on mainland exchanges, freezing $2.6 trillion of shares, or about 40 percent of the market's capitalization. Photographer: Jerome Favre/Bloomberg via Getty Images
Jerome Favre/Bloomberg via Getty Images

The Hong Kong stock market touched its lowest point since Aug. 5 on Monday, as a stronger U.S. dollar continue to take a toll after Donald Trump’s victory in the U.S. presidential election sent Treasury yields soaring.

The Hang Seng index fell 1.4%, to 22,222.22, while the China Enterprises Index lost 1.0%, to 9,342.87 points.

Hong Kong stocks are unlikely to have a strong rebound soon,” said Alex Wong, Hong Kong-based director at Ample Finance Group, adding that the rising U.S. dollar and falling long-term government bond prices dampened shares in Hong Kong and other emerging markets.

After Friday’s market close, the Hong Kong government reported cooling economic momentum in the third quarter. Economists said Hong Kong would continue to face pressure from global economic uncertainty as well as increasing tensions with Beijing that could threaten stability and impede policymaking.

On Monday, shares fell across the board in Hong Kong, with the information technology and property sectors leading the decline.