The Hang Seng Index dropped 1.3 per cent to 17,654.62 at 10.37am local time, the lowest since August 21. The Tech index lost 2 per cent, while the Shanghai Composite Index lost 0.5 per cent.

Tencent weakened 2 per cent to HK$303, Alibaba Group dropped 1.7 per cent to HK$83.05 and Meituan tumbled 3.1 per cent to HK$115.50. HSBC weakened 0.7 per cent to HK$60.70 and developer Sun Hung Kai Properties lost 0.8 per cent to HK$79.70.

The city’s benchmark index has declined 1.9 per cent this week, bringing the slide this month to 3.9 per cent. China’s housing market slump and liquidity squeeze at property developers, coupled with Beijing’s drip-feed approach to stimulus, have prompted global funds to dump their holdings.

“It isn’t any surprise to see equities struggle to gain traction today, with investors digesting the news that tighter interest rate conditions will be staying with us for some time yet.” said Tim Waterer, chief market analyst at KCM Trade. Gains will be harder to come by for Hong Kong stocks, he added.

Hong Kong halts rate hikes in lockstep with Fed but warns of ‘risks’

Based on new projections, “the majority of meeting participants believed “it’s more likely than not that it will be appropriate for us to raise rates one more time in the two remaining meetings this year,” Powell told reporters after the decision.

Other key Asian markets retreated. Australia’s S&P/ASX 200 dropped 1.3 per cent, the Nikkei 225 Index in Japan dropped 1.1 per cent, while South Korea’s Kospi slid 1.4 per cent.