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Alibaba, JD.com pace stock losses in Hong Kong amid global tech, crypto slump on policy risks
- Chinese tech stocks slid after their Nasdaq peers suffered the biggest weekly beating since the depth of Covid-19 pandemic
- Hong Kong saw the biggest outbreak of Covid-19 infections in 18 months on Sunday, hurting the chances of further economic reopening
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Chinese technology stocks tumbled in Hong Kong, tracking a slump in US peers and digital assets as traders turned cautious on policy tightening risks and the city recorded the most Covid-19 cases in 18 months.
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The Hang Seng Tech Index lost 2.8 per cent at the close of Monday trading, the steepest in two weeks as Alibaba Group Holding and JD.com led the pullback for a second day. The Hang Seng Index retreated 1.2 per cent, while China’s Shanghai Composite Index erassed losses to end little changed.
Alibaba, the owner of this newspaper, fell 6.3 per cent while Tencent Holdings slipped 1.1 per cent. NetEase lost 7.5 per cent, JD.com retreated 5.6 per cent and Meituan dropped 2.2 per cent.
Major Asian markets were mixed. Shares in South Korea retreated by 1.5 per cent, while Australian stocks lost 0.5 per cent. The Japanese benchmark rose 0.2 per cent.
“The start of Fed hiking cycles tends to pose a modest headwind to Asian equities,” strategists at Goldman Sachs wrote in a report on Friday. Still, regional response to the onset of Fed tightening may not be as severe as previous episodes, given China’s easing bias, they added.
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