India, Sept. 17 -- Hong Kong equities traded lower after the latest US Federal Reserve interest rate decision strengthened the dollar and pushed Treasury yields higher. The higher-rate environment has raised concerns over liquidity and the performance of rate-sensitive stocks in Hong Kong. The Hang Seng Index was around 24,516 on September 17, while the index had earlier fallen about 1.2% to 24,410 during Thursday's session.

The Hong Kong Monetary Authority also increased its base rate by 25 basis points to 4.25% following the US Fed's move.

Why Are Hong Kong Stocks Falling?

The latest pressure on Hong Kong stocks is largely linked to expectations of tighter monetary conditions in the US. A higher US interest-rate environment can stren...