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Hong Kong stock market
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Alibaba, Meituan sink tech stocks in Hong Kong to record lows on regulatory concerns while HSBC slips after earnings report

  • Renewed concerns about regulatory tightening infect Chinese tech stocks in Hong Kong, sending the market barometer to record low
  • More than US$110 billion has been erased from the 30-member Tech Index over three days since China ordered Meituan and peers to slash food-delivery fees

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Chinese tech stocks hit new low in Hong Kong amid renewed concerns about tightening regulation. Photo: AP
Cheryl Heng
Hong Kong stocks slumped by the most in five months on mounting concerns Chinese technology companies are facing another round of regulatory restrictions. HSBC slid after posting earnings that missed expectations.
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The Hang Seng Index sank 2.7 per cent to 23,520.00 at the close of Tuesday trading. The Tech Index retreated 1.9 per cent to an all-time low as losses snowballed to about 8 per cent over three days. The Shanghai Composite Index dropped 1 per cent. Contemporary Amperex lost 1.2 per cent in Shenzhen.

Alibaba Group Holding, the owner of this newspaper, tumbled by as much as 5.3 per cent in the biggest pullback in two weeks, before ending with a 3.1 per cent loss. Chinese authorities are said to have asked state-owned firms and lenders to review their exposure to its 33 per cent-owned Ant Group.

“As China sorts out [those with exposure to Ant Group], it has put a bit of fear back in the market,” said Louis Tse Ming-kwong, managing director of Wealthy Securities. “Stringent policy will continue” to be in place, he added.

Meituan plunged 5.1 per cent and JD.com dropped 3.4 per cent. Tencent pared decline to 0.1 per cent, having suffered a 5.2 per cent beating on Monday. The WeChat operator rejected reports it was facing a crackdown. China has not approved new online games for seven months.
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More than US$110 billion of market value has been erased from the 30 Hang Seng Tech Index members since Friday, when the Chinese government ordered Meituan and other food-delivery platform operators to slash fees to help businesses ride out the Covid-19 crisis. About US$1.5 trillion was lost in relations to crackdowns in the Chinese tech sector in 2021.
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