Stock rally halted as Chinese tech giants surrender gains after steep rebound
- Hang Seng Index took a breather after a three-week rally as Chinese tech stocks surrendered gains
- Some fund managers see value among Chinese tech stocks after months of regulatory crackdowns
The Hang Seng Index slipped from a three-week high, losing 0.1 per cent to 26,320.93 at the close of trading on Wednesday. The benchmark earlier advanced by as much as 0.8 per cent. The Shanghai Composite Index declined 0.04 per cent to also snap a two-day rally.
The Hang Seng Tech Index retreated 0.2 per cent. Hua Hong Semiconductor led losses with a 6.9 per cent plunge as a major state-backed semiconductor fund cut its holding by 1.07 million shares, according to a local media report. Industry peer SMIC lost 2.3 per cent. They overshadowed gains in Tencent Holdings and Meituan.
“Investors have different opinions [on the outlook of tech stocks],” said Linus Yip, chief strategist at First Shanghai Securities in Hong Kong. Yip said. “Some investors might not want to chase the big rebound.”
Before today, mainland Chinese funds have been flocking back to tech stocks. Net buying of Tencent has totalled HK$2.5 billion (US$324.2 million) this month, while Kuaishou Technology saw HK$1.4 billion of net inflows since it was added to the Connect trading link.