Downside risks dash hopes for Hong Kong rally

The rebound in Hong Kong stocks that briefly made them the world's best performers is unravelling at an even faster pace.

The city's equities have fallen 3.7 per cent in the past two days, erasing almost half the gain from their May low through June 7. The rally was sparked by speculation the Federal Reserve would proceed slowly with interest rate increases and a second mainland exchange link would be unveiled. Stocks slumped as no start date for the Shenzhen tie-up was announced and concern that Britain may exit the European Union spurred a global selloff.

Bloomberg