Hong Kong stocks post longest decline in 9 months on renewed US-China tensions
Markets react to Trump’s threat to impose a 100 per cent tariff on all Chinese imports and restrict critical software exports from November
The Hang Seng Index closed 1.5 per cent lower at 25,889.48, extending its loss for the last six days to 5.1 per cent and marking the longest losing run since January. The Hang Seng Tech Index dropped 1.8 per cent.
On the mainland, the CSI 300 Index fell 0.5 per cent and the Shanghai Composite Index retreated 0.2 per cent.
Companies with heavy exposure to the US led the losses. Biotech major WuXi AppTec, which derived two-thirds of its revenue from America in the first half, tumbled 5.9 per cent to HK$105.80 and its affiliate WuXi Biologics plummeted 4.8 per cent to HK$36.06. Alibaba Group Holding sank 1.7 per cent to HK$162.60 and Tencent Holdings shed 1.9 per cent to HK$639. Xiaomi slumped 5.7 per cent to HK$49.08 following a report that an SU7 electric vehicle made by the company crashed in the southwest mainland city of Chengdu.
Chipmaker SMIC bucked the trend, rallying 3.4 per cent to HK$80.15 on expectations that a revival in US-China tensions would boost demand for home-grown chips.