Advertisement
Hong Kong stocks end November in turmoil as CNOOC crashes 14 per cent on report of possible US sanctions
- Hang Seng Index tumbled 2.1 per cent, the most in more than six weeks, while Shanghai Composite retreated 0.5 per cent
- CNOOC crashed by 14 per cent to lead losses among blue chips in Hong Kong on possible new sanctions by outgoing Trump administration
Reading Time:3 minutes
Why you can trust SCMP
Hong Kong stocks fell by the most in six weeks to end the month on a sour note after a report of potential new sanctions on Chinese companies by the outgoing Trump administration and a worrying jump in local Covid-19 infections.
Advertisement
The Hang Seng Index tumbled 2.1 per cent to 26,341.49 amid the twin concerns, ending six days of advance. The Shanghai Composite retreated 0.5 per cent, for a monthly gain of 5.2 per cent.
CNOOC crashed 14 per cent and led declines in Hong Kong as the stock marked its biggest loss since a 17 per cent slump on March 9. PetroChina dropped 6.1 per cent, while Sinopec plunged 6.9 per cent. Both stocks declined by the most since May 4.
Reuters reported on Monday that the US was poised to target CNOOC parent, China National Offshore Oil Corp, to a blacklist of companies with alleged ties to the Chinese military. In August, the US acted against 11 Chinese firms and a designation of 20 top Chinese firms it deemed to be owned or controlled by the Chinese military.
The potential move by the Trump administration “came as a bit of a shock to the markets”, said Stanley Chan, director of research at Emperor Securities.
In a filing to the Hong Kong stock exchange Monday afternoon, CNOOC said that its parent company has not yet received any official notice or decision from relevant US government agency. Chip maker SMIC, one of the sanction targets, fell 2.7 per cent.
Advertisement
Advertisement