Tencent, Alibaba Health pin stocks at 5-month low as China locks down another manufacturing base while BYD halts six-day rout
- Chinese authorities ordered a snap lockdown in Guiyang, a manufacturing base for producers including Geely Auto and battery maker CATL
- BYD gains on technical rebound, after stock sales by Berkshire Hathaway triggered a six-day 19 per cent rout
The Hang Seng Index fell 0.1 per cent at 19,202.73 at the close of Tuesday trading, pinned to the lowest since mid-March. The Tech Index was little changed while the Shanghai Composite Index climbed 1.4 per cent.
Tencent Holdings retreated 1.5 per cent to HK$314.20 while Alibaba Health slumped 2.7 per cent to HK$4.31. Water-bottling group Nongfu Spring lost 1.4 per cent to HK$44.40. Auto retailer Zhongsheng Group slipped 1.3 per cent to HK$34.50. In Shenzhen, electric-car battery maker Contemporary Amperex tumbled 2.8 per cent to 455.20 yuan.
“China’s zero-Covid policy, with the latest lockdowns, has added pressures to the market as traders expect a negative impact on the economy,” said Dickie Wong, executive director of research at Kingston Securities. China might roll out supportive measures to shore up recovery, he added.
Guiyang, capital city of southern Guizhou province, will enter a four-day lockdown until Thursday, potentially derailing factories run by Geely Auto and electric-car battery maker Contemporary Amperex Technology.
Markets in the region ended mixed, with equities in South Korea adding 0.3 per cent and those in Australia losing 0.3 per cent. Prices in Japan were little changed.