Hong Kong stocks slip from four-week high as Alibaba paces tech slump and energy crunch seen derailing economic recovery

Tech stocks retreated as Alibaba surrendered some of its 24 per cent rebound from October low

Higher energy and metal prices seen hitting power producers and manufacturers, dimming economic recovery outlook

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Tech stocks in Hong Kong gave up all of Monday’s rally while the city braces for the approaching typhoon Kompasu. Photo: Felix Wong

Published: 10:51am, 12 Oct 2021Updated: 4:47pm, 12 Oct 2021

Hong Kong stocks retreated from a four-week high as tech leaders from Alibaba Group Holding to Meituan faltered amid concerns surging global energy prices will undermine economic revival efforts.

The Hang Seng Index slid 1.4 per cent to 24,962.59 at the close after reaching the highest level since September 14 on Monday. The Hang Seng Tech Index tumbled 3.2 per cent, giving up all of the advance a day earlier. The Shanghai Composite Index lost 1.3 per cent.

Investors locked up gains from the swift rebound in Chinese tech stocks in recent days as valuations cheapened, underpinned also by expectations that the worst in tech-sector regulatory crackdown is over.

Alibaba, the owner of this newspaper, sank 3.9 per cent to HK$161.30 to surrender some of the 24 per cent surge from an October 5 record low. Meituan and Tencent Holdings lost at least 2.6 per cent. Sunny Optical shed 4.2 per cent to HK$193.20 after saying shipments of handset lenses slumped in September.

“The policy headwind will probably persist longer than expected,” said Guo Yuantao, an analyst at China Merchants Securities. “We are still cautious about the internet, gaming and education sectors, though the valuations are low.”