Hang Seng Index falls to negative territory ahead of Fed meeting

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Hang Seng Index falls to negative territory ahead of Fed meeting

The benchmark Hang Seng Index fell to negative territory as shares of U.S. listed Chinese tech companies traded notably lower in Hong Kong on Monday.

The Hang Seng Index was down 0.9% at the time of writing, as investors turned cautious ahead of the U.S. Federal Reserve monetary policy meeting this week.

The market was weighed down by concerns about tighter monetary policy by the Federal Reserve and the surging COVID 19 cases in Hong Kong that could affect further economic reopening in the financial hub.

The South China Morning PostChina Morning Post reported that there were 140 new coronaviruses in the city on Sunday, the most in a single day in 18 months.

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U.S. listed Chinese tech companies traded mostly lower after the news.

The shares of the China Evergrande Group OTC: EGRNY have gained more than 7% since the embattled developer said it has appointed an official from the China Cinda Asset Management unit as a non-executive director.

A report by Bloomberg said that China Evergrande faces a deadline for coupon payments totalling $352.5 million on Monday.

It was reported that Tesla Inc. NASDAQ: TSLA CEO Elon Musk shared a picture of Graffiti art on the Giga Berlin factory wall on Twitter, sparking speculation that the plant may soon begin operations.

The start of production at Giga Berlin is crucial for the expansion of Tesla's production capacity, since it currently exports made-in China cars to Europe.

The major averages in the U.S. ended lower for the fourth consecutive day, and the shares of Chinese companies, including electric vehicle maker Nio Inc., fell sharply in U.S. trading on Friday.