Hong Kong stocks sink as Alibaba, Chinese tech juggernauts log worst day in three weeks on earnings jitters
- Hang Seng slumped as tech benchmark suffered the biggest loss since October 27 before key earnings reports from Alibaba and peers
- Signs of weaker earnings and losses forewarned by results from Tencent to Bilibili and Baidu as companies nursed year-long crackdown
The Hang Seng Index retreated 1.3 per cent to 25,319.72 at the close of Thursday trading. The city’s tech benchmark sank 3 per cent, the most since a 3.2 per cent setback on October 27. The Shanghai Composite Index lost 0.5 per cent.
Alibaba, the owner of this newspaper, tumbled 5.3 per cent, the most in 10 weeks, before the e-commerce group’s earnings report later Thursday, while its health unit crashed 6.1 per cent.
Rival JD.com, which also reports on the same day, fell 3.6 per cent. Food delivery platform operator Meituan slipped 2.5 per cent before its report card next week.
“Alibaba’s core business is expected to be under pressure because of weak consumer spending,” said Jiao Juan, an analyst at Essence Securities in Shanghai. ”Headwinds such as the sporadic outbreak of the pandemic and flooding have chipped away at spending impetus.”
Three firms started trading for the first time on the mainland bourses. ACM Research (Shanghai), a semiconductor manufacturer, jumped 53 per cent. Assure Tech, which develops and produces testing reagents, rose 13 per cent. Hunan Hengguang Technology, a chemical manufacturer, surged 160 per cent.
Markets in Asia-Pacific were mixed on Thursday. Australian equities rose 0.1 per cent, while the Japanese and South Korean benchmark fell 0.3 and 0.5 per cent respectively.