New World Development leads slide in Hong Kong developers as rate-cut hopes diminish

Sun Hung Kai Properties

11/04/2024 08:19

** New World Development's  00017.HK  shares fall 6.6% to
HK$8.25, on track for biggest one-day pct drop since March 1
    ** Other Hong Kong-listed property developers also lower
    ** New World Development, which has one of the highest debt
ratios in Hong Kong's property sector, sinks to lowest since
March 28
    ** Company's shares biggest pct loser in Hang Seng Property
index  .HSNP  and third-biggest decliner in Hang Seng index
 .HSI 
    ** Prospects for a first Federal Reserve interest-rate cut
before the end of summer took a body blow on Wednesday with
another U.S. inflation report that cast into stark relief the
stickiness of price pressures across the U.S. economy
    ** Traders are now betting the Fed will deliver a first
quarter-point interest rate cut at its Sept. 17-18 meeting, 
with one more rate cut by the end of the year
    ** The Fed was seen cutting rates a total five times this
year three months ago
    ** Rival property developers Henderson Land  0012.HK , CK
Asset  1113.HK , Longfor  0960.HK , SHKP  0016.HK  and China
Overseas Land  0688.HK  down between 0.6% and 1.5%
    ** Hang Seng Property index eases 0.9% and Hang Seng index
slips 0.2%

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))