BYD skids after Buffett sells as Alibaba, JD.com weigh on tech stocks amid surprise drop in China manufacturing

Name: Chinese President Xi Jinping unveils 8-point vision for nation’s Belt and Road Initiative at forum
Uploaded: 2023-11-01T02:35:38.000Z
Duration: 2 min 48 s
Description: Chinese President Xi Jinping unveils 8-point vision for nation’s Belt and Road Initiative at forum

A private report showed Chinese manufacturing unexpectedly contracted last month, confirming a government report

BYD slips after Warren Buffett’s Berkshire Hathaway trimmed its stake again in the EV maker’s Hong Kong-listed shares

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A man takes pictures at the piazza outside the Exchange Square in Central, Hong Kong. Photo: Elson LI

Jiaxing Li

Published: 10:35am, 1 Nov 2023Updated: 4:34pm, 1 Nov 2023

Hong Kong’s stocks declined, as a surprise drop in manufacturing raised concerns about the strength of China’s economic recovery. BYD slipped, extending a three-month slump, after Berkshire Hathaway trimmed its stake again.

The Hang Seng Index dropped 0.1 per cent to 17,101.78 at the close of Wednesday trading, after earlier slipping as much as 0.8 per cent. The benchmark has lost about 15 per cent following setbacks in the past three months. The Tech Index lost 0.2 per cent while the Shanghai Composite Index added 0.1 per cent.

Alibaba Group dropped 0.7 per cent to HK$79.50, and rival e-commerce platform operator JD.com weakened 1.1 per cent to HK$98.70. Food delivery platform Meituan lost 1.4 per cent to HK$109, Macau casino operator Sands China declined 1.7 per cent to HK$20.65 and travel agency Trip.com retreated 2.5 per cent to HK$262.20.

BYD dropped 1.6 per cent to HK$233.60, adding to a 1.9 per cent loss in October. Warren Buffett’s Berkshire Hathaway trimmed its stake again in the EV maker’s Hong Kong-listed shares to 7.98 per cent on October 25 from 8.05 per cent, according to a stock exchange filing.

The Caixin/S&P Global PMI manufacturing index fell to 49.5 in October from 50.6 in September, versus consensus estimates of 50.8. A similar report by the statistics bureau on Tuesday showed activity surprisingly contracted last month, against forecast for an expansion.

02:48

Chinese President Xi Jinping unveils 8-point vision for nation’s Belt and Road Initiative at forum

Investors turned more bearish over the past month amid concerns about China’s faltering economy and rising geopolitical risks in the Middle East. The Hang Seng Index has declined 14 per cent this year, the worst performer among major global stock indices this year, according to Bloomberg data.

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