Hong Kong stocks fell on Wednesday, pressured by a sharp reversal in property shares after the city’s chief executive unveiled a mix of housing and tax relief policies that disappointed some investors.
The Hang Seng index fell 0.4 per cent to 28,389.57 points, while the China Enterprises Index lost 0.1 per cent, to 11,411.41 points.
In her maiden policy speech, Carrie Lam on Wednesday warned the city faced “grave” challenges and must develop a diversified and high value economy.
She pledged to increase land supply where possible and launch a new subsidised “starter homes” scheme to help families not eligible for cheap-rental public housing.
But property shares gave up initial gains, and closed the session down 1.8 per cent, as some observers felt Lam’s housing initiatives were not bold enough.
In particular, some investors had bet Lam would announce details of how she plans to free up more land in the tiny territory for development.
Materials shares also weighed, dropping 1.8 per cent.