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Hang Seng Index
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Tencent drags Hang Seng Index down as it plummets to six-week low amid souring US-China relations, Apple suppliers slammed

  • Technology giant Tencent fell 4.8 per cent to HK$502, extending a 5 per cent loss on Friday after Trump signed an order to ban the use of WeChat
  • Next Digital plunged then rebounded after Jimmy Lai, who owns the Apple Daily publisher, was arrested for violating Hong Kong’s national security law

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An electronic board displaying the Hang Seng Index in Central, Hong Kong. Photo: Felix Wong
Zhang Shidong
Hong Kong’s stocks dropped for a third straight trading day, as concern about worsening China-US ties sent Tencent Holdings, Apple suppliers and other technology companies tumbling.
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The Hang Seng Index retreated 0.6 per cent, or 154.19 points, to 24,377.43 at Monday’s close. It follows a fall of 1.6 per cent – the biggest loss in two weeks – on Friday, after US President Donald Trump ratcheted up his attack on Chinese technology companies by signing an order that will ban the use of Tencent’s social-media app WeChat in 45 days.

Tencent, which has the biggest representation on the city’s benchmark with an almost 12 per cent weighting, slid to a six-week low, extending last week’s loss. A host of companies supplying parts to Apple fell in tandem after a star analyst said iPhone shipments could shrink by 25 to 30 per cent as a consequence.
Shares of Next Digital saw wild swings after reports Jimmy Lai Chee-ying, the owner of the publisher of Apple Daily, had been arrested for allegedly breaking Hong Kong’s new security law. They fell by as much as 17 per cent and jumped 183 per cent to 25.5 Hong Kong cents at the close on possible speculation that the company will become a target for back-door listings.

“As the tension between the two powerful nations escalates, the market remains jittery,” said Hong Hao, managing director at Bocom International Holdings in Hong Kong. “Chinese stocks will continue to face strong resistance from a trading perspective amid headline risks.”

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The mainland’s Shanghai Composite Index was choppy in morning trading before closing 0.8 per cent higher at 3,379.25, as traders await key July economic data that is due later this week.

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