Hong Kong stocks end four-day winning streak as Trump administration explores new restrictions on Chinese companies, targets Ant Group

Hang Seng Index slipped 0.2 per cent, bucking gains in most markets in Asia-Pacific; Trump in new video vows to ‘make China pay’

Alibaba fell as much as 1 per cent while Tencent slipped 0.7 per cent before they pared losses

Reading Time:2 minutes

A monitor displays stock market information at the New York Stock Exchange as Trump signals more measures against China, with Ant Group being a potential target. Photo: Bloomberg

Published: 11:08am, 8 Oct 2020Updated: 5:09pm, 25 Oct 2020

Hong Kong stocks slipped on Thursday as the Trump administration mulled new restrictions on Chinese companies, with digital payment platform operators Ant Group among newest potential targets. Casino stocks also weighed on the market.

The Hang Seng Index slipped 0.2 per cent to 24,193.35 at the close of trading to put an end to four consecutive days of advance. Most Asia-Pacific markets posted strong gains of 0.5 per cent to 1 per cent, while the mainland Chinese bourses remained shut for the ‘golden week’ holiday.

The local benchmark index has risen 3.1 per cent so far this month. It fell 6.8 per cent in September for its first drop in four months.

“The Hang Seng is down today because of potential new measures from the US on more Chinese companies” which affected sentiment, said Kenny Wen, wealth management strategist at Everbright Sun Hung Kai. “Also, tech stocks have been quite overbought recently.”

The US government was exploring restrictions on Ant Group and Tencent over concerns that their digital payment platforms would threaten national security, Bloomberg reported quoting people familiar with the matter. Separately, President Donald Trump, in a new video, also vowed to make China pay for damage caused by the coronavirus.

Ant Group, which is conducting a stock offering in Shanghai and Hong Kong, said in a statement that it was unaware of any such discussions within the Trump administration, and that its business was primarily in China.