Very Hot Weather Warning in Effect; Hong Kong Stocks Drop 400 Points Amid US-Iran Tensions
Hong Kong issued a Very Hot Weather Warning today, and citizens are advised to take precautions against heatstroke. Meanwhile, affected by the deadlock in negotiations between the United States and Iran, the Hong Kong stock market fell sharply after the opening, underperforming neighboring regions. Additionally, the Japanese yen has dropped to a nearly 40-year low, drawing high concern from the Japanese government.
The Hong Kong Observatory has issued a Very Hot Weather Warning. The Centre for Health Protection of the Department of Health reminds the public that high temperatures can easily trigger illnesses. Preventive measures should be taken, such as staying hydrated and avoiding strenuous outdoor exercise to prevent heatstroke or heat exhaustion.
In financial markets, the Hang Seng Index performed weakly today, dropping 400 points shortly after the opening to test the 23,500 level. The decline was significantly greater than those in the Japanese, South Korean, and Taiwanese stock markets. The main cause of market volatility is the uncertainty in negotiations between the U.S. and Iran in Switzerland. Reports indicate that the Iranian delegation left mid-way, and Iran has once again blocked the strait, leading to rising interest rate expectations and pressure on U.S. stock index futures. Among local stocks, Wharf Real Estate Investment Company (Wharf REIC) fell about 7%, and Li Auto dropped nearly 4%. However, artificial intelligence (AI) hardware-related stocks rose against the market trend, with Kingboard Holdings and Yangtze Optical Fibre and Cable both recording gains.
In the foreign exchange market, the Japanese yen fell below the 161 level against the US dollar, hitting a nearly 40-year low. Japanese Finance Minister Satsuki Katayama issued a verbal intervention, stating that they are closely monitoring exchange rate movements. The continuous depreciation of the yen will directly affect the purchasing power of Hong Kong citizens traveling to Japan and related trade costs.
Regarding corporate news, China Resources Power announced the spin-off of its subsidiary, China Resources New Energy, for listing on the Shenzhen A-share market (referring to stocks registered and listed in Mainland China). The offering price is set at 10.11 RMB per share, with an expected maximum fundraising of 24.5 billion RMB. Additionally, Lai Sun Garment and Lai Sun Development plan to sell their interests in the CCB Tower in Central, with the transaction expected to be completed as early as the beginning of July.
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