June 11, 2020 / 8:53 AM / a month ago

Hong Kong shares follow Asian markets lower on growth worries fanned by sombre Fed outlook

June 11 (Reuters) - Hong Kong stocks fell the most in nearly three weeks on Thursday, as Asian markets track Wall Street lower after a downbeat economic outlook from the U.S. Federal Reserve rekindled growth concerns.

** The Hang Seng index fell 2.3%, to 24,480.15 points, while the China Enterprises Index lost 2.0%, to 9,944.60 points.

** Thursday’s correction came after a robust rebound that brought Hang Seng almost 10% higher from end-May levels.

** In a challenge to the recent optimism in global stock markets, the Fed predicted the U.S. economy would shrink 6.5% in 2020 and unemployment would still be at 9.3% at year’s end.

** Data out earlier had also shown core U.S. consumer prices fell for a third straight month in May, the longest stretch of declines on record.

** Stocks fell across the board in Hong Kong. Financials and real estate were among the worst-performing sectors.

** In the spot light was NetEase, the Nasdaq-listed Chinese online gaming and entertainment company. The company’s Hong Kong-listed shares ended the session at HK$130, compared with its offer price of HK$123.

** A wave of U.S.-listed Chinese companies are seeking secondary listings in Hong Kong. Chinese e-commerce retailer JD.com has priced its shares at HK$226 ($29.16) each and raised about $3.87 billion in its Hong Kong secondary listing, according to two people with direct knowledge of the matter.

Reporting by the Shanghai Newsroom; Editing by Shailesh Kuber

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