Hong Kong stocks show fatigue as tech stock sell-off infects Bilibili’s Hong Kong market debut

Hang Seng Index surrendered a 0.5 per cent advance as tech stocks slumped 2 per cent, a carnage that erased some US$500 billion from February peak

Mainland market benchmarks closed with gains after losing all of 2021 rally earlier this month

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Two ox statues outside the Hong Kong stock exchange building in Central. Photo: Xinhua

Published: 10:37am, 29 Mar 2021Updated: 4:35pm, 29 Mar 2021

Hong Kong stocks pared gains as investors thrashed technology stocks again. Reports of major stock dumping tied to troubled US fund hurt sentiment, infecting Chinese video-platform operator Bilibili on its market debut.

Traders started the week on a cautious mode as Credit Suisse and Nomura warned of steep losses tied to margin calls on an unidentified hedge fund. Earlier, Goldman Sachs and Morgan Stanley liquidated about US$20 billion (HK$155 billion) worth of US-listed Chinese tech and American media stocks on Friday belonging to New York-based Archegos Capital Management, according to media reports.

The Hang Seng Index ended little changed at 28,340.48 .35, losing a 0.5 per cent advance in late trading. The Shanghai Composite Index rose 0.5 per cent to 3,435.96 from near the lowest in more than three months.

Technology stocks, however, slumped 1.9 per cent in Hong Kong. The index had erased all of its 2021 gains in early March, wiping out more than US$450 billion in market value since it peaked on February 17, according to Bloomberg data. Bilibili closed with a 1 per cent discount to its IPO price.

“The general situation of the stock market is relatively bad,” Bilibili chairman and CEO Chen Rui said at a media briefing. After Bilibili priced its IPO, “US-listed Chinese stocks have experienced the biggest drop in recent years, which should be regarded as a black swan event.”

Longfor, China Overseas Land, and Bank of Communications led gainers with at least 5.8 per cent rally, while Meituan slumped 7.2 per cent while Alibaba Health and Anta lost more than 3 per cent to restrain the market advance.