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Alibaba, Geely drag Hang Seng to March low on China lockdown concerns, BYD slumps after Berkshire sells again
- A lockdown in Chengdu was extended to control an outbreak while a surge in mass testing of residents crashed the electronic system
- Berkshire sold 1.716 million BYD shares on September 1 for about HK$451 million on average, to follow after an August 24 sale: filings
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Hong Kong stocks slumped to a five-month low amid growing concerns about the economic fallout from lockdowns in mainland China and growing tension between US and China on technology exports. BYD tumbled after Berkshire Hathaway trimmed its stake again.
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The Hang Seng Index slid 1.2 per cent to 19,225.70 in Monday trading, the lowest level since mid-March. The gauge declined 3.6 per cent last week. The Tech Index retreated 1.9 per cent while the Shanghai Composite Index gained 0.4 per cent.
Alibaba Group Holding slipped 2.4 per cent to HK$88.50 while Tencent Holdings lost 2.9 per cent to HK$319 and Geely Auto slumped 7 per cent to HK$14.08. BYD crashed 5.9 per cent to HK$215 after Warren Buffett’s Berkshire sold on September 1. Baidu lost 1.6 per cent to HK$137.10 as the stock joined the Hang Seng benchmark family.
“Buffett’s selling of BYD shares has impacted the market sentiment negatively so the Chinese tech stocks have also tumbled,” said Louis Tse Ming-kwong, managing director at Wealthy Securities.
Chinese authorities extended a lockdown in Chengdu in southwestern Sichuan province for another three days this week, while a surge in residents undergoing mass testing crashed the electronic system. Some 33 mainland cities including tech hub Shenzhen have imposed some sort of restrictions, straining production and mobility.
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