Headline shares of the Hong Kong financial market declined on Friday, 21 December 2018, tracking losses on Wall Street overnight as investor consternation was sparked amid worries about slowing global economy, Federal Reserve's fourth rates hike this year and plan to continue its balance sheet reduction, and on concern a partial US government shutdown could inhibit economic activity. In afternoon trade, the Hang Seng Index declined 53.35 points or 0.21% to 25,570.18. The Hang Seng China Enterprises Index fell 73.11 points or 0.72% to 10,017.64.

The revived possibility of a shutdown worsened the downbeat mood on markets after the Federal Reserve announced another interest rate hike on Wednesday and made only subtle adjustments to the course of monetary policy tightening next year despite rising worries about global growth and a big pullback in the stock market.

The Fed's move on Wednesday to largely adhere to its plan for more rate hikes over the next two years and keep its balance sheet reduction plan on autopilot spooked investors already worried about slowing economic growth.

Adding to the gloom was the possibility of a partial US government shutdown on Friday. President Donald Trump told Republican congressional leaders he will not sign a government funding bill because it fails to include enough funding for border security.

US share market declined for second straight session on Thursday, as investors worry that global economic growth is cooling off, concerns over a partial government shutdown, and that the U.S. could slip into a recession in the next few years. The Dow Jones Industrial Average fell 464.06 points, or 1.99 per cent, to 22,859.6, the S&P 500 lost 39.54 points, or 1.58 per cent, to 2,467.42 and the Nasdaq Composite dropped 108.42 points, or 1.63 per cent, to 6,528.41.