Hong Kong stocks plummeted following the U.S. Federal Reserve’s move to increase interest rates. The Hang Seng Index was the biggest loser in Asian trading today.

The Fed’s decision, while widely anticipated, has stoked fears of slower global growth and tighter liquidity conditions, impacting investor sentiment in Hong Kong.

Market analysts suggest that the rate hike, coupled with ongoing trade tensions, has created a climate of uncertainty, prompting investors to reduce their exposure to riskier assets.

Specific sectors particularly affected include:

• Real Estate
• Financials
• Technology

The Hong Kong Monetary Authority is expected to follow suit with its own rate increase, further impacting borrowing costs and potentially dampening economic activity.