Record plunge in JD.com, Alibaba hits Hong Kong on US delisting act, with US$577 billion eroded from market since Ukraine invasion

Hang Seng tumbled 1.6 per cent as tech leaders like Alibaba, JD.com and Meituan crashed by more than 4 per cent

The US SEC asked five Chinese companies to show cause why they should not be delisted in new move following an audit inspection law

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Hong Kong stocks are headed for the worst week since the depth of Covid-19 pandemic in March 2020. Photo: Sam Tsang

Published: 10:24am, 11 Mar 2022Updated: 5:33pm, 11 Mar 2022

Hong Kong stocks tumbled, with the benchmark capping its longest weekly loss in 15 months, as Chinese companies faced renewed regulatory risks in the US. Ceasefire talks between Russia and Ukraine stalled.

The Hang Seng Index lost 1.6 per cent to near a six-year low of 20,553.79 at the close of Friday trading. The 6.2 per cent setback since Friday completed a four-week losing run, the longest since December 2020. The Hang Seng Tech Index plunged 7.6 per cent, and the Shanghai Composite Index weakened 2.2 per cent.

JD.com tumbled by a record 11 per cent after saying annual loss widened. Meituan and Tencent slumped at least 4.5 per cent. Alibaba Group Holding crashed 5.5 per cent to a new all-time low.

“Everyone is panicking and rushing to sell” under current risk-off sentiment, said Dai Ming, a fund manager at Huichen Asset in Shanghai. “There could be more selling pressure, should the Ukraine ceasefire talks break down or oil prices climb back up.”

Pharmaceutical group BeiGene plunged 4.9 per cent and Yum China lost 6 per cent in Hong Kong, while HutchMed sank 9.5 per cent and Zai Lab shed 6.3 per cent. ACM Research lost 9.2 per cent in Shanghai, all following a rout in their American depositary shares.