Alibaba, Tencent, Meituan push Hong Kong stocks lower as tensions in US-China relations resurface
- Hang Seng Index closes 1.6 per cent lower, its biggest drop in three weeks, with Chinese technology stocks leading the pack of decliners
- Hearing by US lawmakers raises fear that a law is in the offing to possibly get Chinese companies booted from American exchanges
The Hang Seng Index fell 1.6 per cent to 25,628.74 at the close on Wednesday, the biggest decline since October 4. Chinese technology stocks proved to be a major drag on the broader market, with the Hang Seng Tech Index sinking 3.2 per cent. Tencent Holdings, Meituan and Alibaba Group Holding shed at least 3 per cent.
China’s Shanghai Composite Index lost 1 per cent.
Local stocks slumped after ties between Beijing and Washington took a sudden wrong turn, with some earlier signs suggesting an improvement in their relations. Official media reports said earlier that high-level officials from the two nations held “candid’’ talks this week.
US lawmakers held a hearing on how to protect American investors that invest in Chinese stocks over issues ranging from audits to fake company names and forced labour, fanning speculation that Congress will enact laws next year that will probably lead to the delisting of Chinese companies trading in the US. In another related development, the US Federal Communications Commission revoked the licence of a China Telecom subsidiary to operate in the nation.