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Monday, December 12, 2016, 16:28

Mainland tumble pushes down HK stocks

By Agencies

Hong Kong stocks fell the most in one month on Monday, hurt by a tumble in mainland shares.

The Chinese mainland's stocks tumbled the most in six months on Monday after regulator's fresh measures to rein in insures' aggressive stake-building.

Investors were already cautious ahead of a Federal Reserve's policy meeting later this week which is widely expected to bring a US interest rate hike for the first time this year, making emerging markets less attractive.

Hong Kong's currency peg to the US dollar ensures that interest rates follow that of the United States, meaning higher borrowing costs for real estate developers. An index tracking property shares lost over 2 percent at the close.

The benchmark Hang Seng index extended early losses and dropped 1.4 percent, to 22,433.02, while the China Enterprises Index lost 1.7 percent, to 9,699.31 points.

All sectors in the city lost ground.

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