Hong Kong technology and software stocks clobbered as US equity market rout continues
Tencent drops 3.27 per cent and Xiaomi falls 5.78 per cent, while carmakers recoup some losses
Hong Kong stocks continued to slide on Tuesday, with technology and software shares taking a beating in the wake of a market tumult in the US that saw prices tumbling at companies including Twitter, Facebook, Netflix and Intel.
The Hang Seng Index slipped 0.5 per cent, or 150.12 points, to 28,583.01, and the China Enterprises Index was down 0.2 per cent, or 21.59 points, to 11,024.73.
Meanwhile, in mainland China, the Shanghai Composite Index rose 0.3 per cent, or 7.35 points, to 2,876.40, while the CSI 300 - which tracks large companies listed in Shanghai and Shenzhen - was little changed at 3,517.66.
“People are waiting to see what is happening with the (US-China) trade war,” said Louis Tse Ming-kwong, managing director of VC Asset Management, adding that mainland Chinese investors are focused on A-shares rather than stocks traded on the Hong Kong exchange. “Investors want to focus on A-shares. They are more concentrated on their own stocks at the moment.”
In Hong Kong, Chinese internet giant Tencent fell 3.3 per cent to HK$355.20, as disappointing earnings from such US tech leaders as Intel and Twitter continued to impact the Hong Kong market.
Tencent will announce its second-quarter results on August 15.