Hang Seng Index Sinks Below Net Assets for First Time Since 1998
- Hong Kong's benchmark stock index deepens bear-market rout
- Concern over capital outflows, weaker dollar spurs selloff
Asian Markets: Is This a 'Dead Cat Bounce?'
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Hong Kong stocks fell below the value of their net assets for the first time since 1998 as concerns over capital outflows and China’s economic slowdown sent the Hang Seng Index deeper into a bear market.
The benchmark gauge slumped 1.8 percent at the close, pushing its price-to-book ratio below one, a level unseen since the Asian financial crisis roiled regional markets and popped a domestic property bubble almost 18 years ago. The Hong Kong dollar traded near its weakest since August 2007, while benchmark money-market rates jumped to a more than six-year high.